Bangkok--16 Feb--Neo Target
Rasa Property Development Plc. realized on demand for housing and condominiums remaining strong despite current economic conditions, Rasa Property Development Plc will develop high quality property projects in the central business area of unique designs to suit lifestyles at reasonable and affordable prices.
Acharaporn Siriphaivan, Managing Director of Rasa Property Development Plc, said, “demand on condominium projects where prices start from just over Bt1 million is likely to grow faster than other housing projects. Additionally, economic conditions and lifestyles have resulted in consumers becoming more rational with their spending habits. Therefore, the company has decided to focus more investment on developing the condominium business, particularly in central Bangkok close to public transport facilities. We are aiming to launch one or two projects towards the middle of the year targeting young professionals. Location, quality of design, lifestyle and affordability will be the key factors to attract them”.
Rapi Pinijchob, Deputy Managing Director of Rasa Property Development Plc, added, “Completion in the property business will be fierce this year and we believe this will result in lower prices. Properties located close to mass transit stations will have the advantage to attract higher prices. Consumers have become more rational about how they spend on property and so, we will increase our sales channels to reach our target market offering security for every project”.
Currently, there are four existing and ongoing projects of Rasa Property Development worth in total, Bt2.14 billion. Among them, two are single house projects, Rasa Village on Phuthamonthon Road and Rasa Spanish Courtyard on Kaset-Navamin Road. The other two are condominium projects, Wilshire Condominium on Sukhumvit Road and Wilmore Condominium on Paholyothin Road. The Rasa Park Lane on Ram-Indra Road is a new project of single houses. For information, The Pathomporn Grand Home project was closed in Q3 of year 2006 with sales of Bt419.74 million.
Lertmongkol Waravenuch, Deputy Managing Director of Rasa Property Development’s Financial and Business Development division, revealed “The company recorded Bt482.89 million sales revenue in the first nine months last year, a 148 per cent increase over the same period in 2005. The majority was generated from the revenue recognition of Wilshire and Rasa Spanish Courtyard projects, which started to convey in the second quarter of 2006. The company posted Bt31.62 million net profit in the first nine month last year, up from Bt2.66 million or 9.1 per cent in the same period the previous year. Dividends of Bt0.80 were paid to shareholders in January. The company expects to obtain a significant rise in revenue from the completion of our five projects.”
Acharaporn added “Rasa Property has reached the achievement through the economic crisis because of our good risk management. For example, we don’t have a land bank policy and every plot of land that we buy will be developed right away. This method has reduced the burden of high capital cost. We don’t have any financial problems. Our management team has expertise in the business. We have always been concerned over good corporate governance and transparency. Also, our management strategy has worked in line with our production, construction and investment plans. As a result, our business has continuously grown since we first went into business. Apart from this, there are several factors that have helped the company grow strong and fast. However, the most important key factor is the high quality of our project development policy, which has been well accepted and trusted by our customers. It has built up our brand awareness among the target group of niche market, who prefer the premium products that are unique with reasonable price. This has helped the firm reach its goal so far and resulted in the company being able to continuously develop new projects”.
Currently, the firm has submitted a filing application to the Securities and Exchange Commission (SEC) to offer the initial public offering (IPO) for 20 million shares or 25 per cent of the registered capital. After the IPO, the company’s paid up capital will be Bt400 million at Bt5 par. The firm appointed Trinity Advisory 2001 Co Ltd as the financial advisor. The funds raised through IPO is expected to be used for buying land in the business area in order to develop new projects. The remaining funds will be utilized as the operation capital and loan repayment to financial institutions for some outstanding loans.
Rasa Property Development Plc has been in property business for over 12 years and the company has continuously expanded its business. In 2004, it became a public company. The company currently has Bt400 million registered capital. The firm is one of the country’s leading property developers that has aimed to provide high quality residential developments in the central Bangkok and its periphery.
For more information, please contact
Neo Target Co Ltd
Narueporn Cheevanantapornchai / Lalida Leelanukul
Tel. 02-631-2290-5 ext. 307 and 305 Fax. 02-234-6192-3
E-mail : [email protected] / [email protected]
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