AP sticks to target despite troubles

AP sticks to target despite troubles.

KANANA KATHARANGSIPORN

Asian Property Development Plc (AP) is moving ahead with its plan to create four new projects worth a combined 4.7 billion baht, targeting revenue of seven billion baht by the end of 2007.

Chief executive Anuphong Asavabhokin said the listed developer had not revised its plan or revenue target despite the current troubled political and economic climate.

The company's plans for 2007 include land acquisitions valued at between 1.5 billion and two billion baht.

''Everything is unclear so we can't predict the situation now,'' he said yesterday. ''But if unrest affects the country's economy and GDP growth, the property business will definitely slow down as well.''

Mr Anuphong said, however, that the developer saw no need to revise its revenue target since it had a sales backlog worth 8.8 billion baht, on which revenue realisation would start in the first quarter of this year.

''Today the opportunity belongs to cash-rich developers to shop for good plots in good locations, while last year it belonged to landlords,'' he said.

AP's finances are healthy, with a debt-to-equity ratio declining from 1.2 to 0.7 times after it earned 750 million baht from sales of RS Tower Thonglor.

He said the property market lately had been changing from month to month, which meant developers had to review their strategies frequently. He also downplayed concerns about a condominium oversupply, saying many developers were aware of the situation and were making the appropriate adjustments.

Although the number of customers visiting AP's project sites had dropped by 20-30% since the New Year's Eve bombings in Bangkok, calls had increased since the company released its latest TV commercial, he said.

The commercial promotes The Address Chidlom, which has already recorded pre-sales of about 200 of its 597 units. The official sales launch will be next weekend.

The three-billion-baht luxury condominium will occupy a 4.5-rai site on Soi Somkid, near the Central Chidlom department store. As the main target market is Thai buyers, units starting from 38.5 square metres are being offered.

Prices will start at 90,000 baht per sq m, or between four million and 17 million baht a unit. Construction would begin this month and take until mid-2009, with sales expected to close by the end of 2007, according to Mr Anuphong.

AP also plans to launch Life

Bangkok Post
Sunday January 14, 2007