Areeya plans to launch projects worth over B4bn

Areeya's 'a space Clear'

Areeya's 'a space Clear'

The listed developer Areeya Property Plc plans to launch low-rise and high-rise projects worth over four billion baht on its existing land plots this year, according to executive chairman Wisit Laohapoonrungsee. The company expects sales of three billion baht this year, slightly down on last year due to the slower market. It anticipates three to four billion baht of revenue this year, supported by the transfer of condominium projects under the ‘a space’ brand to buyers.

Its low-rise projects are townhouses with two to four storeys while its high-rise is ‘a space Clear’ in Asok-Din Daeng, where the company has already developed the ‘a space Asok’ project.

The 1.2-billion-baht ‘a space Clear’, likely to be launched in the second half of this year, will feature two 40-storey buildings with a total construction area of around 40,000 square metres, of which 6,000 sq m would be office space. The company expects to have around 488 fully furnished condominium units priced around 60,000 baht per sq m.

Mr Wisit said Areeya had a sales backlog of around five billion baht, of which three billion would be transferred this year. It is still waiting to assess the situation before investing in more land. It already owns land that can accommodate projects worth 10 billion baht.

Areeya’s ‘a space Sukhumvit 77′ faces a delay in construction pending environmental impact assessment while ‘a space Kaset-Navamin’ has encountered problems due to uncertain border lines of public land. But Mr Wisit said the problems had been resolved and the Sukhumvit 77 project was finished and the Kaset-Navamin project would be done by September.

In late 2007, the company set up its construction arm, One Up Co Ltd, with 60 million baht in registered capital to build all its projects using tunnel formwork technology that has cut construction times and labour by almost 50%. One Up is expected to help Areeya meet its schedule and to cut construction costs by more than 5%.

Dennis Ong Boon Seong, CEO of One Up, said the company completed five projects with contracts worth 527 million baht in its first year of operating.

It is currently constructing six projects worth 1.47 billion baht and has contracts worth 1.88 billion baht for future projects. In its second year the company plans to tap the market outside the Areeya Group and to generate 30% of its revenue from these jobs.

About the author

Nina Suebsukcharoen Nina Suebsukcharoen
Nina Suebsukcharoen is a senior journalist with The Bangkok Post, Thailand's first English language newspaper and specialises in the property and real estate sector.
Other posts by Nina Suebsukcharoen ( 21 )
Website: http://www.bangkokpost.com/

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