he listed firm Univentures Plc (UV), a chemicals producer and property developer, plans to spend 3 billion baht to take over an office building and develop three new condominium projects targeted at the middle- to lower-priced segments.
The budget will be split equally among acquiring an existing office building; buying new plots of land; and developing new condominium projects worth a combined 3.3 billion baht.
The unit prices of the new projects, to be located near mass transit, will range between 45,000 and 70,000 baht a square metre or 1-3 million baht each.
Managing director Thanapol Sirithanachai says the condominium market outlook is highly competitive with more focus on smaller units and the middle-to lower-priced segments where there is real demand.
“The loan-to-value curb will have an impact on speculation but only minimally on the overall market while an uptrend in interest rates will have greater effect on housing demand,” he says.
Meanwhile, rising interest rates will have limited impact on the company. It has enough funds for the planned developments with little need for project loans.
UV last year recorded revenue of 2.26 billion baht, up 71% year-on-year. Of the total, 1.13 billion baht was from the property business. Net profit for the first three quarters of 2010 was 88.6 million baht, compared to a net loss of 21.4 million baht in the same period of 2009.
It expects 2.5 billion baht in sales and 3.53 billion baht in revenue this year, an increase of 56%. This year’s revenue proportion of the property business will increase to 64% from 51% while the contribution from zinc oxide will drop to 34% from 44% in last year.
The company had a sales backlog of 3.8 billion baht, of which 2.1 billion baht will be realised this year.
Next year, UV will have a new stream of income from leasing space at its new office building Park Ventures on Wireless Road worth 5 billion baht, scheduled to open in September. This building will charge monthly rents of between 800 and 850 baht per sq m so it will obtain around 300 million baht a year based on the projected 95% occupancy rate.
UV’s zinc oxide business recorded total sales of 14,546 tonnes, with revenue of around 1 billion baht, up from 13,061 tonnes or 744 million baht in 2009. Currently, the company is building a new plant at the Rojana Industrial Park with an investment of 270 million baht.
The new facility will be able to support market demand with capacity exceeding 18,000 tonnes a year from 15,000 tonnes. After completion by the first quarter 2011, it expects to book sales of 16,000 to 17,000 tonnes, with sales of 1.2 billion baht by the end of 2011.
UV shares closed yesterday on the Stock Exchange of Thailand at 2.68 baht, down two satang, in trade worth 930,000 baht.
Source:metroparksathorn.com
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