The first is Andamanda, a Bt4.5 billion integrated entertainment and resort destination that is set to be the largest of its kind in Phuket when it opens in 2021. The second, the InterContinental Phuket luxury hotel and resort, is expected to be operating with full services in the third quarter of 2019.

The projects are being marketed as “eco-friendly”.  They will support local products and help boost local employment to enhance the sustainable development of tourism while applying innovative technology solutions to ensure customer service excellence, said a release from the company on Tuesday.

Proudputh Liptapanlop, a Proud Group executive director, said the attraction expects to welcome over 700,000 visitors within the first year.

Pasu Liptapanlop, also an executive director, said their strategy is to be able to accommodate tourists, especially millennials and families, by offering unique travel experiences.

“We believe that it will be a new iconic landmark for Phuket and support Phuket’s image and positioning to truly be among the world-class entertainment destinations,” said Pasu. “Additionally, the opening of these projects will also help boost the economy, employment and incomes in local communities in Phuket and its surroundings.”

The Bt2.5 billion InterContinental Phuket Resort will differentiate itself from other existing five-star hotels by showcasing exquisite Thai handicrafts and the art collections of local Thai artists, such as a sculpture that reflects Thai beliefs and culture about heaven and earth. It was crafted by Komkrit Teptian, a local Thai artist who was well-known for his Giant Twins statue that was exhibit at the Bangkok Art Biennale event. Another highlight is a series of paintings of local tourist attractions by Dr Khan Payungphan, a local artist and a Fine Arts professor at the Faculty of Humanities and Social Sciences at Phuket Rajabhat University.

InterContinental Phuket Resort was designed by the well-know architect and interior firm, Habita and P49 design and associates under the concept “heaven on earth”.

The exterior and interior details embrace the true beauty of “Thainess” while reflecting its rich heritage and culture, delivering a memorable leisure experience.

The hotel will also present a new style of Thai food to complete a special travel experience. In addition, the Proud Group is pushing for the InterContinental Phuket Resort to comply with the LEED Green Building construction standards at the Gold level. Every detail of design and creativity must take into consideration the concept of environmental protection, said the release.

Krisda Rojanasomsmithi, the director for Hotels of Proud Group, sees the tourism outlook for Phuket as being on the bright side. In the first half of this year, almost 6 million visitors travelled through Phuket airport despite the downside news about the tourism situation.

With convenient transportation, well-established public utilities, the upgrading of the current Phuket airport and the expansion of the second airport in Phuket along with government’s new policy to promote Phuket and Andaman as a 365-day destination with no high or low season, Krisda said Proud Grow was assured that Phuket will become the must-visit destination for all.

While China remains as one of their major target countries, the firm is also looking into other potential markets such as Russia, UK, and India, especially for FITs and MICE.

“One of the advantages of being a member of the InterContinental Hotel Group is that we gain access to internal data helping us to better understand our customers’ journeys,” said Krisda. “We are also in the midst of partnering up with our sister companies in Phuket to offer integrated experiences for all visitors to ensure the most memorable trip. Thus, it will help support the local economy and community in many ways.”

The company is planning to become Thailand’s leading integrated entertainment resort developer by 2022, and expects a total of over 1 million visitors at both Vana Nava Water Parks and Andamanda with over 1,000 rooms within the 4 hotels.

The “Tiger Lane” luxury home office is in classic Sino-Portuguese style and the project, costing a total of more than Bt500 million with a starting price of Bt38 million, has been designed on the concept “A Living Treasure”, with only five families privileged enough to own properties on this last piece of freehold land in the area. The company is targeting the new generation of Thai-Chinese entrepreneurs who are looking to expand their businesses in the Sueapa-Yaowarat area – one of Thailand’s most important trade and business centres.

The pre-sale period is set for August 31- September 1 at the Tiger Lane project sales gallery.

Executive vice-president of Condominium Project Development and Strategic Project Management Piti Jarukamjorn, said a market survey in the Sueapa area showed that residential quarters with trade and business potential still represent an important market and some of the highest demand in Bangkok. This is because the area has been an important cultural and trading centre for the past 200 years.

Freehold land in the Sueapa and Yaowaraj areas is rare and increasingly harder to find. This fact is supported by the expansion of the mass transit system into the area, namely the MRT Hua Lampong-Laksong Blue Line-Southern Route extension at Wat Mangkorn Station, a mere 5-minute walk or 550 metres from the project, linking the Bangkok side to the Thonburi side.

This has led to the sky-rocketing price of land in the area to Bt1.35 million per square wah – among the highest prices in Bangkok and equivalent to a growth rate of 4 per cent per year. Facilities and amenities surrounding the project include shopping centres such as Klongthom Centre, Klongthom Plaza and Mega Plaza Wang Burapha, and leading hospitals such as Bangkok Central, Hua Chiew and Samitivej Chinatown, as well as educational institutions Depsirin School, Saipanya School and Suan Kularb School. Places of worship especially for the Thai-Chinese population include Wat Mangkorn, Wat Kanikapol and the Por Teck Tueng Foundation. Old classical shops and new lifestyle places that are gaining in popularity such as those on Nana Road are also located here. These have been renovated from old buildings in the area and made into new hangouts for those who favour individuality. They all serve as cultural and entertainment magnets for both Thai and foreign visitors alike.

The Tiger Lane project is situated on 0-1-58.5 rai of land on Sai Chao Kamrob Road, in the form of luxurious home offices. The four-storey building has parking for two cars per unit, and usable spaces of 254-400 square metres on 24-50 square wah of land each. The frontage of each unit ranges from 5.5 to 12.3 metres while the ceiling of the ground floor is a lofty 3 metres.

“We hope that Tiger Lane will be another project that fulfills all the needs of the customers in this area. The sale of only five units will take place on August 31 and September 1 at the Tiger Lane project sales gallery. A special privilege for customers is the private consultation with one of Thailand’s feng shui masters who will advise how to decorate homes and offices according to the feng shui principles to enhance business prosperity. We expect to receive enthusiastic response with sales closed before the end of the year and the transfers completed within the timeframe leading to the company meeting its target of Bt2.9 billion sales,” Piti said.

The BOT on Thursday announced it would relax the LTV for homebuyers purchasing residences together and that borrowers or co-borrowers applying for a loan under the first home buyers rule and who do not own any other residence would be given a 90 per cent mortgage on a condominium and 95 per cent for a single detached house and townhouse.

The co-borrower is defined as a borrower supporting the family in its bid to obtain a mortgage to buy a residence but who will not become the owner of that residence.

“We believe that the relaxation of the LTV in relation to co-borrowers will see the property market improve by up to two per cent for the rest of this year. This market represents about 20 per cent of the total property market value, which is expected to be worth about Bt760 billion this year,” Issara Boonyoung, chief executive officer of Kanda Group, who also honor chairman of Business Housing Association, said in an interview with The Nation on Friday.

He added that the relaxing of the rule will open the opportunity for co-borrowers to make a down payment of about 10 per cent for condominium and five per cent for single detached house and townhouse under the LTV first home concept.

The transfer of residences on hold this year has continued to drop and currently stands at seven per cent, which is better than the early estimates of 10 per cent.

The LTV, which became effective on April 1, 2019, resulted in a drop in the property market in the second quarter of this year, as most homebuyers sped up the transfers of their residential projects and completed them in the first quarter. This had a direct impact on the financial results of property firms, with most announcing a double-digit drop in the second quarter.

For example, Supalai Plc announced total revenue of Bt4.47 billion for the second quarter, a 30-per-cent drop from the Bt6.44 billion achieved in the same period of last year.

Sansiri Plc announced Bt4.28 billion, down 23 per cent drop from its Bt5.54 billion total for the same period in 2018.

AP (Thailand)’s reported total Q2 revenue of Bt4.8 billion, down 25.9 per cent, and a net profit of Bt488 million, down 59.32 per cent.

LPN Development’s Q2 revenue, meanwhile was Bt1.67 billion, a drop of 26.75 per cent, and its profit Bt176.73 million, a 29.31 per cent decline.

SC Asset Corporation’s revenue was Bt3.49 billion, down 10.51 per cent, and profit Bt282 million, a 37.33 per cent drop.

The developer’s total revenue was Bt4.47 billion for the year’s second quarter, a 30-per-cent drop 30 per cent from the Bt6.44 billion achieved in the same period of last year, according to the company reports to the Stock Exchange of Thailand on Wednesday.

Net profit was reported at Bt766.15 million for the second quarter, a 43-per-cent drop from the Bt1.34 billion in the same period of 2018.

Meanwhile, the company reported total revenue of Bt10.89 billion in the first half, a 1-per-cent decline from Bt11.04 billion in total revenue in the same period of last year. Net profit was Bt2.29 billion in 2019’s first half, up 1 per cent from its Bt2.26 billion net profit in the same period of last year.

The company’s revenue in the second quarter of this year decreased due to newly-finished condominium projects being transferred to the end of the second quarter of 2019. In the second quarter of 2018, the newly finished condominium projects had been transferred in April 2018.

In addition, the Bank of Thailand announced the criteria to supervise housing loans by adjusting the maximum loan-to-value (LTV) ratio, which was put into effect from April 1, 2019 onwards. It affected some customers’ transfer of ownership in this first quarter.

“We believed that our sales and revenue in the rest of this year will increase to meet with our target, when the government [implements its] policy to develop the country’s infrastructure projects, which will cause the domestic purchasing power to rise,” the company’s managing director Tritecha Tangmatitham said on Thursday.

Tritecha spoke after introducing Supalai’s first condominium project, among the 21 new residential projects to be launched in the second half of this year. Supalai City Resort Sukhumvit 107, is worth Bt2.4 billion, with starting prices at Bt1.78 million per unit.

The plunge reflects a 40-per-cent drop in sales in the second quarter, according to the company’s reports to the Stock Exchange of Thailand (SET) on Thursday.

The company’s net profit was reported at Bt285 million for the year’s second quarter, a 26.35 per cent drop from the Bt387 million in the same period of last year.

The company’s net profit margin also dropped from an average 7 per cent in the second quarter of last year to 6.7 per cent in this second quarter, following a rise in marketing and management costs, according to the company reports to the SET.

However, Sansiri is showing first-half total revenue of Bt10.92 billion, up one per cent from total revenue Bt10.77 billion for the period in 2018, Net profit is reported at Bt690 million in the first half of this year, a 0.43 per cent drop from 2018’s net profit of Bt693 million for the same period.

The company’s chief operating officer Wanchak Buranasiri said in press release on Thursday that the company has continued to maintain sales transfers, as it works to a Bt32 billion target for this year end. Although its total revenue in the first half was lower than its early estimation, plans remain to launch 16 new residential projects worth Bt24 billion in the rest of 2019.

Ten of the 16 new residential projects are to be single detached houses worth Bt13 billion, while the next six projects are condominiums worth Bt11 billion, he said.

Currently, the company has a presale backlog worth Bt47 billion that it will be booking as its revenue in this year until 2021.

SC to increase focus on low-rise projects in rest of 2019

The Nation

On Wednesday, SC announced total revenue of Bt3.49 billion and Bt282 million in net profit for the second quarter of this year, down 10.51 per cent and 37.33 per cent respectively from the same period of last year.

To maintain its revenue growth, the company plans to develop seven hotels from 2019 to 2021 with a Bt3 billion investment budget. In those three years, it aims to boost its recurring income to achieve 25 per cent net profit, the company’s chief executive officer Nuttaphong Kunakornwong said on Wednesday.

He added that the company is confident of achieving sales of Bt19 billion as targeted for 2019, up more than 20 per cent.

SC will unveil 10 projects – both low-rise and high-rise projects – worth a combined Bt13.3 billion in the second half of this year. They include eight low-rise projects worth Bt7.3 billion, including single detached homes under Pave, Venue Flow, Bangkok Boulevard and Bangkok Boulevard Signature brands starting from Bt4 million to Bt30 million, as well as twin homes and townhomes under V Compound and Verve brands starting from Bt2 million to Bt6 million.

The eight projects are located in diverse locations, namely Rama V, Rangsit, Seri Thai and Bang Na, to cater to the consumer demand for low-rise projects which remains strong in every location and at every price level.

In addition, SC plans to launch two high-rise projects worth a combined Bt6 billion, including the Crest Park Residences only 250 metres from Lat Phrao Intersection BTS station worth Bt3.5 billion. This project is developed by SC NNR1 Co Ltd, a joint venture between SC and Nishitetsu Group, a Kyushu, Japan-based multi-industry giant with strong expertise in real estate and transportation business. The second project is Scope Thonglor, worth Bt2.5 billion to be developed by Scope Tower Co Ltd.

Moreover, SC has 46 ongoing projects for sales worth Bt41.9 billion, 60 per cent of which are low-rise projects and the other 40 per cent high-rise projects.

Backlog projects waiting for transfer amounted to Bt10.6 billion, 57 per cent of which the company expects will realise income this year. They include both low-rises and high-rises.

“SC has planned to increase the portion of recurring income in our portfolio to ensure sustainable growth in the future,” said Nuttaphong. “SC has set the budget of Bt3 billion for new business, namely, the development of mid-to-upscale hotels in Bangkok and seven tourist destination cities in three years (2019-2021) to raise the portion of net profit from recurring income to over one-fourth or 25 per cent of the total.”

SC’s performance in the first half of 2019 saw gross revenue totalling Bt6.698 trillion, 93 per cent of which came from sales of property projects and 6 per cent from renting and service income. The developer’s income from sales of property projects totalled Bt6.236 billion, including Bt5.202 billion from low-rises, up 16 per cent year on year, and Bt1.034 billion baht from high-rises. Its net profit amounted to Bt598 million on total sales of Bt7.023 billion.

As of June 30, 2019, SC and its subsidiaries reported total assets of Bt45.15 billion and liabilities of Bt28.984 billion.

The company’s chairman of the executive committee, Thippaporn Ahriyavraromp, told The Nation after the opening ceremony of Residences Mandarin Oriental, Bangkok on Wednesday,

“We have our business to develop residential property in China; we are looking at investments to develop commercial buildings and business in China as soon as possible,” she said.

She added that the company also is studying expanding investments in India where it sees tremendous potential as the country has a young population. The company wants to explore residential and commercial property.

Meanwhile, luxury project Residences at Mandarin Oriental, developed by The Iconsiam Superlux Residence Co Ltd, in which MQDC is partnering Iconsiam, had its grand opening on Wednesday. The project worth Bt11 billion has been completed and will be transferred to its customers during the rest of this year.

The project has a total of 146 units of which 85 per cent have already been sold, Thippaporn said.

MQDC’s president for the property and service business group, Keerin Chutumstid, said the project now has only two-bedroom duplex, and penthouse duplex units for sale.

The project was priced at Bt550,000 to Bt750,000 per square metre, a high price for a condo project in Bangkok.

Up to 30 per cent of its customers are foreign buyers while the rest are Thai buyers, Keerin said.

The Residences at Mandarin Oriental, Bangkok comprises 146 of what the company calls “the world’s most luxurious waterfront residences”, with two- or three-bedroom options ranging in size from 130sqm to 230sqm, and penthouses ranging from 380sqm to 710sqm. Offering private lift access, 3.2-metre high ceilings and common areas that are approximately three times larger per unit than many other prestigious apartments in Bangkok, the development has set a new standard in luxury living, Keerin said.

Among the unique benefits owners can avail of are exclusive invitation to Mandarin Oriental’s Residence Elite Programme, 24-hour residence concierge service all days of the week, worldwide privileges when staying at any Mandarin Oriental hotel and VIP treatment when shopping at neighbouring Iconsiam retail outlets.

Keerin said the Iconsiam Superlux Residence Corporation Ltd and Mandarin Oriental Hotel Group have formed a partnership that has delivered an exceptional result. “Since this project began, we have strived to create residences that act as a beacon for Thailand on the global stage; a residence that showcases architectural, technological and design features of the finest quality. With exclusivity and status to rival the most sought-after developments around the globe, it is no surprise that only a limited number of residential units currently remain available to prospective purchasers.”

Externally, the 52-storey architectural façade’s graceful lines allude to the classic flourishes of Thai aesthetics, inspired by a soothing boat journey along the adjacent Chao Phraya River. Each residence enjoys uninterrupted views of the river, the city skyline and more than 1,600sqm of private gardens, making The Residences at Mandarin Oriental, Bangkok exude elegance and magnificence.

The Bt11-billion development is located in Iconsiam, the new 55-rai (20-acre), Bt54-billion riverside national landmark, which offers an unparalleled lifestyle experience with world-class dining outlets, luxury retail brands, and innovative entertainment programmes.

Five new hotels in Thailand will come under The Standard brand will be located in Bangkok, Phuket, Samui, Pattaya, and Hua Hin, the company’s CEO, Amar Lalvani, said in a group interview on Wednesday.

Currently, the company operates six hotels under The Standard brand in the US.

The move into Thailand is the first step of its plan to add 19 new hotels to its management rights, under which properties in 16 Asian and European cities will come under The Standard brand including in Bangkok, Samui, Phuket, Pattaya, Hua Hin, London, Paris, Lisbon, Mexico City, Chicago, the Maldives and Jakarta.

Their first hotel in Thailand, to be managed by Standard International, will open in Samui in 2020, followed by four others in Phuket, Hua Hin, Pattaya and Bangkok.

Two of the five in Thailand – located in Phuket and Hua Hin – will be developed by Sansiri Plc, a property developer that holds a 35-per-cent stake in Standard International.

“We cannot say how much investment [we will have in the] two new hotels, but our project in Phuket will have a condominium project for sale that will manage facilities by Standard International,” Sansiri Plc’s board of directors and senior advisor, Supakorn Vejjajiva, said.

Meanwhile, the Standard, London at Kings Cross opened in July of 2019, and will officially hold their Grand Opening event in September, followed by a Maldives property in October this year, Lalvani said.

Its hotels now under its management are recording an average occupancy rate of 85 per cent, he said.

“We will take 5 per cent of the new hotels’ total revenue as the manager, and not the owners, of the properties,” Lalvani said.

The Standard started expanding in Asia and Europe as it saw market opportunities emerging. It plans to launch a new service under a new brand this year to provide consultancy and support to hotels in need of renovation or extending their properties.

“We will offer our expertise on renovation, decoration and management. This is the new model to expand our business,” Lalvani said.

Most of the eight firms that announced their financial result on Tuesday showed dips in revenue and profit in the second quarter compared to the same period last year.

AP (Thailand) Plc reported total Q2 revenue of Bt4.8 billion, down 25.9 per cent last year’s Bt6.48 billion, and net profit of Bt488 million, down 59.32 per cent.

LPN Development Plc’s Q2 revenue was Bt1.67 billion, a drop of 26.75 per cent, and profit of Bt176.73 million, for a 29.31 per cent decline.

SC Asset Corporation Plc revenue was Bt3.49 billion, down 10.51 per cent, and profit Bt282 million, a 37.33 per cent drop.

Ananda Development Plc put Q2 revenue at Bt2.03 billion, down 15.41 per cent, and profit at Bt119 million, down 79.62 per cent.

Pruksa Holding Plc reported Bt7.8 billion in revenue, down 28.44 per cent, and Bt932 million profit, down 40.25 per cent.

Property Perfect Plc put its revenue at Bt4.3 billion, down 8.5 per cent, but its Q2 net profit was Bt471.46 million, up 208.14 per cent from the same period last year.

Other firms reported strong first-half growth, however, thanks to solid performances in Q1, when homebuyers rushed to beat the LTV deadline (see graphic).

Pruksa deputy chief executive Supattra Paopiamsap said that the overall market in metropolitan Bangkok dropped 13 per cent in H1 compared to the same period last year, falling to Bt200.65 billion. Property ownership transfers between April and May fell 24 per cent, to Bt41.9 billion, showing a clear market slowdown.

She said Pruksa would adjust its strategy to be in line with current economic conditions. It plans to launch a further 26 new residential projects worth Bt26.95 billion in 2019, lowering its target for the year from 55 projects to 40.

Its revenue target has been revised down from Bt47 billion to Bt45 billion.

Pruksa reported total revenue of Bt19.66 billion for the first half, up three per cent from the same period last year, and net profit of Bt2.61 billion, up eight per cent.

Its current backlog of properties to sell or transfer to buyers is worth Bt36.93 billion, which will ensure revenues meet the new target, Supattra said.

The company’s directors have meanwhile approved payment of an interim dividend of Bt0.60 a share, she added.

Other firms have also revised 2019 project launch forecasts due to the market swings.

Ananda Development has suspended its Bt10-billion condominium project Ideo Q Phahon-Saphankhwai and will refund buyers’ down payments received since April.

“About 39 per cent of the first phase, totalling 396 units, was reserved,” chief strategy officer Sumeth Ratanasrikul said early this month. “It has become clear that the demand does not match with the concept design, and for this reason we have decided to suspend sales and refund booking and down payments. We will now revise the design and launch it again in 2020.

Ideo Q was under construction on six rai close to the BTS Saphan Khwai station and was designed to have 1,114 units at a starting price of Bt5.5 million per unit.

Half of the total investment each year will go towards land purchases for the housing projects, with the rest put to the development of commercial buildings that will generate recurring income to the company, he said in an interview with The Nation recently.

The company’s recurring income came from warehouses and manufacturing for rent, a golf club, apartments and property management.

“Since a new shareholder took over the management in 2015, we have restructured the business by focusing on developing low-rise residential projects for sale, such as single-detached houses and townhouses and also on developing commercial properties, especially warehouses and manufacturing for rent to generate recurring income to support the business’s expansion in the long term,” he said.

He said that the company’s five-year plan – from 2017-2021 – envisages the contribution from recurring income rising from 10 per cent to reach 50 per cent in 2021 by spending between Bt700 million and Bt800 million to develop commercial properties, especially warehouse and manufacturing facilities in the Bangkok Free Trade Zone, which was developed by its subsidiary Prospect Development Co Ltd.

Currently, the Bangkok Free Trade Zone has rental space of 269,828 square metres, with an occupancy rate of 92 per cent.

The company has already invested an average of Bt750 million to develop a further 140,443 square metres this year, with 60,443 square metres to developed on its own and the remaining 80,000 square metres to be developed by a joint venture firm. The company holds a 40 per cent stake in the joint venture firm, and Frasers Property Thailand owns the rest.

In 2020, the company will invest between Bt700 and Bt800 million to develop its new warehouse and logistic area in the Bangkok Free Trade Zone to serve the strong demand in the market. The new plant will have total warehouse and manufacturing space of more than 70,000 square metres.

“We are engaged in a negotiating process to purchase land of about 50 rai at the Bangkok Free Trade Zone to develop the project next year,” he said.

The company had earnings before interest, tax, depreciation and amortisation (EBITDA) from recurring income worth Bt200 million in 2018 and expects to achieve Bt350 million in 2020.

“We target EBITDA to achieve Bt1 billion in 2021 and up to 50 per cent of the total will come from residential projects for sale, with the other half from recurring income,” he said.

For residential projects for sale, Vorasit said that the company will develop projects such as single-detached houses and townhouses in Bangkok and its suburban area. It plans to build four or five projects each year to generate sales of between Bt2.6 billion and Bt2.7 billion.

This year, the company plans to launch four projects worth Bt4.5 billion in the final quarter.

With an aggressive investment pace for the period from 2017 to 2021, Vorasit said that the company’s investment budget will come from company’s initial cash flow, the issuance of debentures and loans from the commercial banks.

This year, the company has issued debenture worth Bt2 billion to serve the company’s investment needs for this year and the next.

“Our shareholders have approved the issuance of debentures worth Bt4 billion, and we still have room for issuance of Bt2 billion either next year or in 2021, depending on the demand for the use of funds,” he said.

MK Real Estate Development Plc’s top three major shareholders are Finansa Plc, which holds an 18.8 per cent stake; Prateep Tangmatitham with 10.61 per cent; and CPD Holding Co Ltd 6.05 per cent.

The company reported total revenue of Bt4.71 billion and net profit of Bt305.92 million at the end of 2018, followed by total revenue of Bt1.8 billion and net profit Bt127.61 million in the first quarter of this year.