AQUARIUS Estate will invest nearly Bt700 million to develop a condominium worth Bt1.2 billion on Sukhumvit Soi 49 in Bangkok after the company has sold out units of its Casavela condominium project on Koh Samui. The Bangkok project will generate income for the company next year, CEO Yongyutt Chaipromprasith said.
Yongyutt said Bt200 million of the investment budget would come from the company’s major shareholders, Bt480 million borrowed from the bank and the rest come from cash flow. Aquarius Estate succeeded in selling out its Bt600-million hotel condominium Casavela Koh Samui in the first half of this year. The project has 32 units, of which 21 were sold to foreign and local investors. The rest of the units are owned by the company.
Aquarius Estate will manage the project as a hotel, giving unit owners a return averaging six percent a year. The company was launched in 2005 and has registered capital of Bt54 million. Its strategy comprises five businesses: property development, project development management, advisory services, agency services and hotel management.
It had a revenue of Bt254 million in 2007, with Bt206 million contributed by Casavela Koh Samui and Bt48 million from project management and agency fees. The company targets a revenue of Bt300 million this year, with Bt207 million coming from Casavela Koh Samui. Aquarius Estate manages 14 property projects worth a combined Bt16.44 billion. The company will also sign three new contracts worth Bt1.5 billion for project management in the second half of this year.
“We have strong confidence in expanding our business growth, although the property market is signaled to grow only slightly this year, because we offer different concepts to meet customer demand,” Yongyutt said. Demand for residential projects close to mass-transit systems is still growing despite the economic slowdown. Home-buyers want to reduce their transport costs and buy condominiums near their workplaces.
According to the company’s research, 41 city condominiums with a total of 14,000 units were launched in the first half of this year. Some 23 projects are grade-C condos costing between Bt50,000 and Bt80,000 per square meter, 14 are priced at between Bt70,000 and Bt100,000 per square meter, three between Bt80,000 and Bt120,000 per square meter and one is priced up to Bt140,000 per square meter.
Demand for property priced between Bt1.5 million and Bt3 million is showing strong growth, Yongyutt said.—
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