Major schedules 10 launches
SET-listed developer Major Development Plc (MJD) plans to launch 10 new projects worth a combined 15 billion baht in the second half, aiming to have 10 billion baht in presales by the end of the year.
Executive director Petrada Poolvoralaks said the new projects will comprise an office building, five high-rise condominiums, two low-rise condos, a townhouse and a single house. Unit prices will range from 2.8 to 100 million baht.
“This will be the first time since our establishment we are entering the townhouse and single house segments after developing only condo projects,” she said. “We remain focused on the high-end market,” she said.
One of them will be an ultra-luxury single house project with only 10 units in Thong Lor, priced between 70-100 million baht. The units will be pre-built as customers prefer to choose from completed units before making a purchase decision.
The company will spend 1 billion baht to develop an office tower with over 30 storeys and a lettable space of 30,000 square metres on Ramkhamhaeng Road.
“The office market is trending towards the new central business district around Ratchadaphisek, Rama IX and Ramkhamhaeng roads with a good occupancy rate,” she said.
“We have targeted to have at least 150,000 sq m in office space over the next five years.”
By 2021 the company expects to have 100 million baht in annual revenue from renting offices.
Major has an office building, Major Tower Thonglor, on Thong Lor Soi 10 with 19 storeys and a lettable area of 11,600 sq m, into which it invested 1 billion baht.
With full occupancy, the building reaps monthly rents of 650 baht per sq m, generating an income of eight million baht a month.
“We will develop one mixed-use project every year with retail, office and residential parts available on the same site to boost value,” she said.
The company aims to have 10 billion baht in presales per year in 2017-18, up from around 2 billion baht last year, when it launched only two condo projects worth a combined 4 billion baht in 2016.
As of the first quarter, it had a sales backlog totalling 11 billion baht, which will be realised between 2017-19. This year it will complete and transfer units at Marque Sukhumvit worth 6.5 billion baht and M Jatujak worth 4.4 billion baht. Both buildings have sold 70% of total units.
Major expects to have the same revenue as last year, when it recorded 5.4 billion baht, up from 3.5 billion baht in 2015.
Ms Petrada said the company restructured early this year by setting up four new subsidiaries, including Major Development Estate Co for residential developments with a registered capital of 2.5 billion baht.
In the first quarter, the company reported a net loss of 104 million baht on revenue of 555 million baht, compared with a net profit of 69 million baht on revenue of 936 million baht due to no new projects completed in the first quarter this year.
MJD shares closed yesterday at 3.32 baht, unchanged, in trade worth 1.01 million baht.