REAL ESTATE

Metrostar's foreign alliesget cold feet

KANANA KATHARANGSIPORN

The listed developer Metrostar Property Plc has had to freeze a planned joint venture with overseas partners due to the central bank's capital controls and changes to the Foreign Business Act, says chief executive Veera Burapachaisri. The partners feared the Thai government might suddenly change regulations again, he said. They plan to wait for a clearer investment policy before spending money here.

The withdrawal will not affect its business operation, however, as all projects have received financing and the company has a good cash flow, he said. Metrostar plans to launch at least five new residential projects in 2007.

''If we have partners, we can launch more than six projects,'' said Mr Veera, adding that the company would spend one billion baht to acquire land this year.

Metrostar would officially launch two new condominiums on Sukhumvit 66 and the Ratchayothin area in February 2007, with 100 million baht set aside for marketing and advertising.

Target customers would be middle-income earners who earn at least 30,000 baht per month.

It expects to close sales of the two projects within six months.

Metro Avenue Sukhumvit 66 would be located on a 4-rai plot near an extension of the Bangkok skytrain in Udomsuk, with 654 units worth 1.3 billion baht. Meanwhile, the Ratchayothin project would have a total of 1,400 units worth a combined 4.5 billion baht.

Mr Veera said the company hoped to reach four billion baht in sales, with 1.4 billion baht in revenue by the end of 2007 from transfers of units of the Saint Louis Grand Terrace condominium in the Sathon area and Ravipa Townhome on Sukhumvit 103.

Shares of Metrostar (METRO) closed yesterday on the Stock Exchange of Thailand at 15.20 baht, up 10 satang, in trade worth 23.35 million baht.

Thailand News : Business News
Bangkok Post
Friday January 26, 2007