Name : @City Sukhumvit 101 Condominium Location : Sukhumvit 101 Developer : Siam Home Development
[n]Project Description :[/b] Two 14 Storey Condominium Towers, One 12 Storey and Two 11 Storey buildings. Launch : May 2007 Website :www.harrison.co.th
Textile firm expands to land development with Bt3-bn @City project on Sukhumvit
Textile exporters and owners of the Tex-Mart International Group, the Phichitsingh family, has diversified into land development by launching a condominium project worth Bt3 billion on Bangkok's Sukhumvit Soi 101/1 called @City.
Group president Jasvindersingh Phichitsingh said a new company, Siam Home Development, had been established with registered capital of Bt100 million. @City is its first project.
"We have already developed three property projects but they are serviced apartments focused on the higher-income market. Now we are ready to become land developers with our first condominium," he said.
The company plans to develop five condominium buildings covering just over one hectare on a plot totalling 2.7 hectares on Sukhumvit Soi 101/1, about 600 metres from a Skytrain station currently under construction.
The five buildings will eventually offer 799 units. However, the first will contain 168 units and, of these, 60 per cent have already been presold.
The company will open presales for the second building later this month. It has appointed Harrison as its sales agent.
The cost of the entire project is expected to be Bt3 billion. Siam Home Development plans to spend Bt2 billion between now and the first completions in December 2009. Sixty per cent of the investment will be borrowed from banks and the rest will come from the company's cash flow.
"Our textile exports have continued to grow following demand in overseas markets," Jasvindersingh
said. "However, we believe the property market also has potential to generate higher income for our group, so we've decided to develop existing land that we have held for more than five years."
Harrison's chief executive Alan Lin believes that 70 per cent of the project's 799 units will be presold within four months, because @City is located close to the Skytrain and offers lower prices than other condominium projects in the same area.
@City's prices start from Bt1.49 million for a one-bedroom unit with a floor area of 34 square metres.
Siam Home Development's managing director Kuldip Phichitsingh said the company was also planning to develop up to 3.2 hectares of land in the Central Business District as soon as the @City project is successful.
"We expect sales income from our property business to rise by up to 50 per cent from our rental income from our two serviced apartments and rental housing, which now generate up to Bt100 million a year," Kuldip said.
The company has two serviced apartment buildings, on Sukhumvit Soi 23 and Sukhumvit Soi 12, as well
as 17 detached houses for rent at Nichadathani on Chaeng Wattana Road.
A textile trading company has diversified into real estate, launching a 1.3-billion-baht condominium project near the BTS extension with a one-price marketing strategy, according to Kuldip Phichitsingh, managing director of property firm Siam Home Development Co Ltd.
Textile trading, its core business under Text-Mart International Co Ltd, has seen stable growth each year so it moved to property to generate more profit.
The group generates about 500 million baht per year from textile trading and 100 million baht from its rental property business, comprising serviced apartments, detached houses and townhouses.
Mr Kuldip said the company acquired a 17-rai plot on Sukhumvit Soi 101/1 to develop residential and commercial projects worth up to 3.5 billion baht.
The location is 600 metres away from an extension of the Bangkok skytrain, he said.
The first phase would be on a seven-rai plot for @City Condominium worth 1.3 billion baht. It comprises 799 units in five buildings.
The company launched sales of City Canal, its first building, at the House & Condo Fair last month.
It sold 60% of 168 units. One-bedrooms are about 33 to 35 sq m starting at 1.49 million baht, while two-bedrooms are 44-54 sq m starting at 1.89 million baht.
"We used a one-price strategy at 44,000 baht per sq m to attract buyers, so first come first serve," he said.
"We hope to close sales soon as the price will include fully furnished units," said Kuldip Phichitsingh.
The company will spend 20 million baht on a marketing and advertising campaign with the brokerage Harrison Plc as a sales consultant.
Construction will start in September 2007, and all five buildings should be completed by the end of 2009.
The company also plans to develop its plots in Bangkok and a golf course in the provinces.
It owns a seven-rai plot on Sukhumvit Soi 93, a seven-rai site in Nichada Thani and four rai in Hua Hin.
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