Bangkok--27 Apr--Fragrant Group
Fragrant Group continues to remain optimistic about the outlook of the condominium market and is taking the gloomy outlook of the market to consolidate its position by continuing to hire talented people who are being made redundant from other firm’s.
Fragrant, the developer of some of the country’s prime properties, said that it believes that Thai economy still has a good potential and sees that the condominium market still remaining vibrant, especially in the city center, while confirming that the company’s cash flow remains at good levels.
It hopes to push the Circle brand to be the leader of high-ended condo market in the near future.
James Duan, Managing Director of Fragrant Group, the developer of Circle project on New Petchburi Road, disclosed that the company aims at the long-term target to establish the business base in Thailand by focusing on the condominium project in downtown.
The company still regarded Thailand as a potential market, especially due to strong economic fundamental. According to the National Economic and Social Development Board (NESDB), which has come out with statistics that indicates that the growth of population and the tendency of income growth will play a crucial role in increasing the demand for the accommodation in Thailand and the city condominium will be definitely be a popular choice among the new generation.
“According to long-term plan for 10 years, we target to be the leader of high-end condo market by offering high-standard project to our customers. During the current economic slowdown, we will take this chance to restructure our business and strengthen our workforce so as to serve when the economy revives. In next five years, Fragrant will have more activities than it has currently,” he said.
Moreover, Mr. James added that the company also seeks a chance to invest in hotel business or office rental business in order to generate recurring earnings in long term. However, the Fragrant’s projects will mainly be based on the consideration of financial status in order to control the ratio of debt to equity (D/E) to stay at appropriate level and have good cash flow which will help bar the future unexpected impact of crisis.
“If you compare Fragrant with other condominium developers in the market, Fragrant may appear to show little movement. However, that is not our crucial concern. We wish to grow slowly and securely. During the economic slowdown, we will take time to find suitable land and in one year we may develop one more project; it depends on situation. We view that during the slowdown it is a good chance for improving management and strengthening our team in order to serve for revival of market in the future.” said Mr. James.
Fragrant Group started its business in Thailand in 2004 with its initial project being the ‘Fragrant 71’, a condominium worth 250 million baht on Sukhumvit 71 road, with the average price of 50,000 baht/square meter.
In 2006, the company developed The Prime 11, the luxurious condo worth over 1.4 billion baht on Sukhumvit 11 road, with the average price of 90,000 baht/square meter.
The latest project of the group is ‘Circle’ on Petchburi 36 road, which is worth up to 4 billion baht with the average price of 90,000 baht/square meter.
At present, The Prime 11 has seen is sales rise to as high as 90%; while the construction is set to be completed by July this year and the condo units will be transferred to the customers in August.
Meanwhile a sale of ‘Circle’ has seen good gains as well as nearly 80% of the project’s units have been sold out.
Both projects are expected to close their sale this year’s end. Particularly, the opening of Airport Link will promote sales for Circle further.