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Further evidence of confidence and consolidation in the Thai Property Industry

By James Pitchon on Jan 10, 2010 in Residential

LPN one of the leading developers of entry level condominiums announced to the Stock Exchange of Thailand that they had acquired a 5,921 square wah (23,684 square metre) plot of land at Ratchayothin from another smaller publicly listed Developer, Metrostar Property.

 

This is further evidence of confidence among the larger developers to proceed with major projects.

 

It is also evidence of further consolidation in the property development industry which is now dominated by the larger developers.

 

It appears that Thai banks have decided to focus on supporting a small group of larger developers, mainly publicly listed companies which has made it harder for smaller listed and private developers to obtain funding.

 

LPN paid 680,915,000 baht for the plot (115,000 baht per square wah) where they intend to develop four 22-storey condominium buildings with a total of 1,964 units.

 

The company expects that the total revenue will be three billion baht with construction commencing in April 2010 and completion in June 2011.

 

The company estimates that the gross profit margin will be 30%.

 

This is the most expensive land plot that LPN have acquired over the last 12 months and it is also the closest to the city centre.

 

 

 

 

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About the Author

James Pitchon is an Executive Director of CB Richard Ellis (Thailand) Co., Ltd. He is responsible for servicing property requirements of multi-national corporations in Thailand. He has been responsible for the co-ordination of more than 1,000 multi-national corporation property transactions in Thailand over the last nineteen years. He is also a board director of CB Richard Ellis (Vietnam) Company Limited, CB Richard Ellis (Cambodia) Company Limited and the BCCT. Mr. Pitchon joined CB Richard Ellis in 1987 in Hong Kong and established the company’s Beijing office in the Peoples Republic of China where he was responsible for leasing the China World Trade Centre. He joined the Bangkok office in 1990 and is responsible for the marketing and management of many commercial and residential projects. He is responsible for co-ordinating the production of market research supplied to investors and financial institutions. He co-ordinates the property requirements of multi-national companies wishing to establish or expand offices and manufacturing operations in Thailand. Mr. Pitchon is regarded as a leading authority on the Thai property market and is frequently interviewed by the local and international press. He is a Member of the Royal Institution of Chartered Surveyors (MRICS).

Comments (1)

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  1. office space bangkok says:
    January 11, 2010 at 9:54 pm

    The Thai Property need to help those small groups than the larger one, because those larger groups had great funds and they don’t need to obtain too much funding… ^^,

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