BROCK plans Phuket resort
Developer to spend B5bn on project
NUNTAWUN POLKUAMDEE
Baan Rock Garden, a property developer listed on the Market for Alternative Investment, plans to invest in a new resort project worth about five billion baht. Naowanit Silaparat, Baan Rock Garden's managing director, said the project would be set up under a new joint venture called Yamu Property Development.
Baan Rock will hold 50% of the new firm, with Scandinavian investors taking the remainder. Initial paid-up capital for the new company is two million baht.
The new resort project will be located in Phuket and is envisioned to be an integrated resort, hotel and marina complex.
Mrs Naowanit said 10 to 20 rai would first be developed into residential villas, with Baan Rock providing the land investment and the company's new partner the financial support.
Baan Rock also plans to merge operations with its wholly owned subsidiary Navathep Co, a unit set up to sell agricultural products, to help reduce operating costs and expenses.
The company's shareholders will vote on the merger plan on April 6.
Mrs Naowanit said Baan Rock, which listed on the MAI in November, could look to transfer to the Stock Exchange of Thailand after finalising the new partnership. Paid-up capital is currently one billion baht, with 200 million shares outstanding. Par value is one baht apiece.
''We currently meet the listing requirements for the SET. At the same time, we enjoy the tax incentives of the 20% rate for MAI companies, which is better than the 25% reduction offered for SET listings,'' she said.
Mrs Naowanit said the company projected revenues of 300 million baht this year, up from 213.06 million last year, excluding potential gains from the Phuket venture. Baan Rock reported 2006 profits of 45.23 million baht, down from profits of 57.97 million in 2005. The company attributed the 21.9% decline in profits to lower sales volume as rains delayed construction for its Phuket properties.
Shares of Baan Rock (BROCK) closed yesterday on the MAI at 4.82 baht, up two satang, in trade worth 1.99 million baht.
Bangkok Post
Saturday March 17, 2007