Raimon Land Plc today announced plans for the launch of a new condominium brand targeted at young professionals.
The company also announced sales performance, backlog status and financial results for the first half of 2011.
Traditionally exclusively a high-end property developer, Raimon Land announced plans to increase overall market share in terms of sales and size by catering to the growing mid-range segment of the property market.
“This new brand is part of our diversification strategy and objective to increase our reach in the booming Thai real estate market,” said Hubert Viriot, CEO of Raimon Land. “With this new brand we aim to bring the essential Raimon Land DNA experience to a broader group of customers.”
The first project under the new brand will be a THB2.8 billion (US$93.4 million) project in Pattaya to be launched in the fourth quarter of 2011, with completion and transfers by the end of 2014. The project will be located on seven Rai of freehold land at Pratamnuk Road in South Pattaya and target buyers will include weekend home buyers working in Bangkok, holiday home buyers staying in Pattaya for one to three months a year – and Pattaya residents.
A second Bangkok project under the brand is planned for next year.
Prices for projects under the new brand are not set in stone, Mr. Viriot explained, but is expected to be around THB75,000 – 100,000 (US$2501 – 3335) per sqm.
The company’s most expensive project in terms of price per square meter is the 185 Rajadamri, priced at THB250,000 (US$8338) per sqm, the highest price in Bangkok. The 268-unit project is valued at THB9.6 billion and completion is scheduled for end of 2013. So far, 42 per cent of the project has been contracted.
“Compared to other places in the region, THB250,000 per sqm is not a lot,” Mr. Viriot said. He added that 80 per cent of buyers so far have been first-time buyers of Thai nationality. Raimon Land is yet to market the 185 Rajadamri outside the domestic market but Mr. Viriot expressed confidence that the project will do very well.
Due to new accounting rules, property developers may only record sales on transfers, even if a project is under construction with cash instalments being received from customers on non-transferred units. As a result, Raimon Land announced sales only at THB631 million in the first half compared to THB1,668 million in the first half of last year.
“Inevitably the new accounting rules make our revenues and profit figures look weak. But the underlying fundamentals are strong with over THB15 billion, or over half a billion dollars worth of sales backlog,” said Mr. Viriot. “We are 30 per cent in front of last year in terms of sales and let me remind you that last year was our biggest year ever,” he added.
The company announced solid progress for its four current projects. Sales at The River, a 838-unit project valued at THB14.95 billion (US$498.5 million) have reached approximately 74 per cent of the project’s saleable area and sales at Zire Wongamat, located in Pattaya reached 37 per cent of saleable area at the end of June. The company’s Northpoint project, a 376-unit residential development also located in Pattaya and fully constructed, reported 76 per cent of saleable area contracted at the end of the first half of 2011.
As a result of strong sales, Raimon Land reported a total secured backlog at the end of June of THB15.2 billion (US$507 million), of which around two-thirds are related to sales at The River.
Source: Property Report