Bangkok--Feb 28--Siam PR. Consultant
Chaiyant Chakarakul, Chief Executive Officer of Lalin Property Public Company Limited, reported company’s performance in 2004 as total income realization hit 2,345.81 million baht. “Reported earnings are 1,064.7 million baht or 45.60% of the total realized income, while net profit is worth 580.48 million baht or 24.86% of the total realized income. The company is preparing to launch at least 4 new projects with combined project value of 4.55 million baht,” he said.
With regard to the market overview in 2004, Chaiyant said the property sector experienced a major blow during the first quarter of the year following decline in market demand mainly due to heavy buying at the end of 2003 as special privileges granted by the government to promote the industry were about to expire. During 2004, competition also intensified, while other negative factors were affecting the economy. These negative factors included rising oil prices in the middle of the year, higher interest rate trend, soaring construction material prices and various incidents such as the chronic unrest in the south, SARS and bird flu. “However, looking at the demand alone, we find that demand for homes has continued to grow at 24% above that of 2003. The growth is obviously attributed to the 5-6% annual economic growth and support from both the government and private sectors in establishing information sources namely real estate information center, home council and property index. The information available to interested homebuyers is nevertheless vital to the more stable growth of the property sector in the future,” he added.
As for 2005, the market is expected to become more equilibrium with the state of balance between supply and demand due to stricter requirements on the part of financial institutions on granting loans to new housing projects and the troubled ones. “Lalin Property PLC believes the economy will start to recover across the board with the production sector and export sector enjoying real strengthened growth. The demand for home will be on the uptrend again as the economy is projected to grow at 5.5% along with higher employment and household income,” he explained.
The property sector is looking to grow at least by 15% and for Lalin Property PLC, strategy has been made to tap on the real market demand though development of outstanding property project, under which at least 4 new ones are due for launch. These projects are as follows:
1.Burirom Outer Ring Road — Pinklao worth 1.3 billion baht
2.Burirom Rama II- Ekkachai worth 1.25 billion baht
1st Quarter
3.Baan Lalin worth 1 billion baht
3rd Quarter
4.Baan Lalin or Lalin Greenville worth 1 billion baht
Total value 4.55 billion baht
Lalin Property PLC has mobilized funds through issuance of debentures worth 800 million baht at a rating of BBB+ for 3 years with average annual interest of 4.3%; and promissory notes worth 300 million baht at interest of 2.85% per annum. The fund will be used as working capital. The success of fund mobilization has reflected the wide acceptance of the company in the financial community, proving its strength and ability to conduct profitable business activities in regard to development of middle-income houses. The company has remarkable experience in the business and is currently the leader in this particular segment.
“Lalin Property PLC is confident in its team of professionals and leadership in the segment that has successfully serve the home buying needs of new generation executives, who demand quality environment and above standard after-sales management. These factors have continuously created greater value to the project, while enhancing the company’s sales, which in turn translate into higher profitability for investors and shareholders,” he concluded.
For more information please contact:
Marketing & PR Department
Jidapa Pramualsub, Wannaree Sillapangam
Lalin Property PLC Siam PR. Consultant Co., Ltd.
Tel. 0-2732-1041-5 Tel. 0-2693-7835-8 ext 32,42, 0-1817-7153
Fax. 0-2377-9656 Fax. 0-2693-6920
E-mail : marketing@lalinproperty.com E-mail: [email protected]
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