CP Land Co, the property arm of Charoen Pokphand Group, plans at least
two condominium projects in each of the country’s 77 provinces over the
next five years – including on the island of Phuket.
“Our country
may see slow growth, but every time we’ve stumbled we’ve managed to
recover very quickly, as the private sector is strong,” said President
and Chief Executive Sunthorn Arunanondchai, who believes the economy
will grow by 5 percent each year.
However, the country should be
wary of a withdrawal of foreign investment in the industrial sector that
may switch to countries with more stable politics such as Myanmar,
Cambodia, Laos and Vietnam.
“Political problems [in Bangkok] have no effect on our business, as all our condo projects are upcountry,” Sunthorn said.
A
new THBB500 million project in Chiang Rai province was sold out in a
few weeks after its launch. Planned condo projects nationwide will be
worth between THB300 and THB500 million eacg.
CP Land,
established 27 years ago, developed its first condo project in 1993 in
Bangkok and froze such projects a few years later before resuming them
in late 2011. It has launched more than 50 condos in 21 provinces to
date.
“We target growth every year before listing on the stock
market. Now our total assets are B15 billion, and they are expected to
double by 2015,” Sunthorn added.
The company plans to spend THB15
billion next year to develop 20 condo projects, acquire hotels or build
new hotels in potential provinces and build single-house projects in
Bangkok, Pattaya and Si Racha.
It expects THBB1 billion in net
profits from both residential sales and rental revenue. It is also in
talks to buy three plots of land in the Ratchadaphisek Road area to
develop a mixed-use project.
Land prices should not be higher than THB500,000 per square wah, it said.
CP
Land has many large pieces of land covering major provinces. The
largest one is 3,200 rai in Rayong’s Map Ta Phut area, where it has been
developing the CP Industrial Estate for two years.
CP Land expects revenue of THBB2.4 billion this year, up from THBB1.7 billion last year.
This story was first published by The Phuket News and is reproduced as part of an editorial agreement between The Phuket News and PropertyGuru Group.
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