Prantarit and Sunattee Nerngchamnong at their house in Prime Nature Villa Onnuj
The residential development firm was managed by “Khun Sunattee” herself, a source said. Her two daughters and son are still young, a property expert said.
The company launched two upscale residential projects in 2006 in Bangkok’s On Nut area and in Hua Hin under the brand “Prime Nature Villa”.
The global recession has hit the group’s business as foreign buyers have suspended their investment in the property market. However, Sunattee tried to survive the slump by downsizing the projects.
The group also entered into a joint venture with EG Group to develop a Bt700-million condominium in Prachuap Khiri Khan’s Hua Hin beach resort town. The joint venture bought two rai of land worth Bt100 million for the Prime Nature Villa Hua Hin project.
EG Group controls 80 per cent of the joint venture and Prime Nature Villa Holding the rest. Having a partner would speed up sales of the project, the company thought.
EG Group is a construction firm that has expanded into residential projects and serviced apartments. It owns seven apartments under the Lelawadee brand, together generating Bt1 million to Bt2 million in monthly rental income.
The Nation tried to contact the Kiatnakin Bank executive who supports project loans for Prime Nature Group, but failed to reach him.
Sunattee designed the luxury residential project named Prime Nature Villa on On-nut and Lat Krabang roads in defiance of market surveys.
Market research companies were hired to conduct a survey, which was repeated twice, and all three came out with the same results. The project should target the middle-class customer segment with prices ranging between Bt5 million to Bt7 million and lots between 80-100 square metres, they said.
Sunattee didn’t follow the market survey but believed in her own poll of her friends, who mostly preferred homes with large areas of two to three rai per unit. Then she decided to subdivide her parcel of land over 200 rai into lots of at least one rai. Prices for the lots depended not only on the size but also the view and location, such as on the hill or along the lake. The prime lots fetched more than Bt70,000 per square wa.
Sunattee’s vision was to create a Beverly Hills in Greater Bangkok.
The property once was a well-known jet ski circuit called Sundown, which royal families and celebrities often visited. Since it was used for jet skiing, it had both hillside and lakeside vantage points.
In 2003, Prime Nature Villa was set up with registered capital of Bt100 million to start operating a single family home project at prices starting at nearly Bt20 million and going up to Bt100 million.
The project, however, received a warm welcome from celebrities but sales were not steady due to the uncertain economy. Normally, housing projects can close sales in three to five years but this luxury estate failed to meet construction schedules.
An industry source said this creates a direct threat to the billion-baht investment, since “it would create a cash-flow shortage as many cases are pending in courts”.
The source said it was very difficult for the project to close out amid the economic crisis as it was aimed only at wealthy home-buyers. The group’s misfiring marketing strategy did not help either.
Kessara Thanyalakpark, a director of Sena Development, said competition was getting tougher in the property business. As each developer wants to secure a good location for his next project, this may lead to a price war.
The market for land was not as transparent as that for stocks, she said.
Sena Development never had any problem in buying land as it used brokers for that. Parts of its land bank were also non-performing assets from banks, she added.
Somluck
Srimalee
