Ocean Property delays four projects

Political woes take toll on spending

KANANA KATHARANGSIPORN

The real estate developer Ocean Property Co Ltd has delayed its development plans for four projects due to the uncertain political situation, according to president Nusara Banyaipiyaphod. The delayed projects include Ocean Resort & Spa on a 70-rai plot on Koh Yao Yai in Phuket, with 79 villas at rates of 17,000 baht a night. It is scheduled to start in 2008.

Also delayed will be two condominiums on Rama III Road worth two billion baht, a townhouse project on a 49-rai plot near Suvarnabhumi Airport, and a six-building budget condominium in the Vibhavadi area.

Its new development this year will be Ocean Villas Hua Hin worth 600 million baht. It will have 18 Thai-Victorian styled pool villas for sale at prices ranging from 25-100 million baht. Construction will start in the third quarter of the year and sales will open after completion.
''We plan to have overseas roadshows, starting with Hong Kong where we will target condominium investors and wholesalers to boost sales as the local market has slowed down,'' Mrs Nusara said.

Yesterday the company launched the five-star hotel Asara Villa & Suite Hua Hin, an investment of 900 million baht. Located on a 22-rai beachfront site in Hua Hin Soi 5 close to the airport, the hotel has 96 rooms with rates of between 12,000 and 68,000 baht per night.

Mrs Nusara said the hotel would open next month and was expected to have 45-55% occupancy in 2007 and 65% in 2008. The company expected the hotel to break even within eight years, she said.

The company's current projects include the 1.8-billion-baht Ocean Portofino Condominium in Pattaya which has recorded sales of 52% worth 900 million baht, lower than the target of 60%. It expects to sell 70% of the suites by the end of the year and close sales within 2008.

The company is also developing O2 Hip, a condominium worth 400 million baht in Soi Nai Lert, with 48 units priced from 92,000 baht per square metre with 50% booked so far. Construction is scheduled to be completed in June 2008.

''The company targets to achieve 500 million baht in revenue by the end of the year. Two-thirds will come from property development and one third from the rental business,'' said Mrs Nusara.
Last year Ocean generated 145 million baht in revenue. About 50% was from rental income from two office buildings in Bangkok, 25% from hotel services and 25% from property sales and other sources.

Bangkok Post
Tuesday April 03, 2007