Thanapat Property Development is back to developing townhouses, with the planned launch of a new Bt900 million development will be located on a six-rai plot at Rama III Road.
Set to be released in October, the project will be developed in two phases and comprises of 70 four-storey townhouses which will be priced at Bt10 million each, the Bangkok Post reported.
“We’re coming back to do what we’re strongest at,” said Managing director Donpiwat Preedawiphat, adding that the townhouses sector is enjoying strong demand but with less risk compared to condominiums.
While Thanapat remained quiet in 2012, it has been busy completing the 728-unit SYM Vibha-Ladprao condo complex which has been delayed for two years in view of problems with its environmental impact assessment (EIA).
“We spent two years clearing up this EIA issue but were finally granted a construction permit and could start building,” noted Donpiwat.
Originally launched in 2008, the condo complex was initially valued at Bt50,000 psm, but grew to Bt80,000 psm during its re-launch in 2011. The delay also boosted the project’s value from Bt1.6 billion to Bt2.3 billion and gross return on investment to 35 percent.
Despite this, Thanapat incurred Bt100 million costs for the two years of interest on the project loan.
“As a developer, investment should generate as quick a return as possible for the next investment,” explained Donpiwat.
“The mid-priced condo market changes fast, and competition is fierce for the high purchasing power of the middle-income earner.”
Meanwhile, the developer will also submit a filing to the Securities and Exchange Commission putting the Lao Peng Nguan Tower 1 office building into a real estate investment trust (REIT). The 90percent occupied 32-storey building features 30,000 sq m and garners rents of Bt380 to Bt400 psm monthly.
“Funding from the REIT will boost our investment in property development next year as we still receive fixed income from rental business,” added Donpiwat.
Shabnam Muzammil, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email shabnam@allproperty.com.sg
Get daily property news in Thai and English straight to your Inbox from Thailand’s number one property website. Subscribe today for free.