Raimon optimistic

General news - Thursday December 13, 2007

IN BRIEF

Raimon optimistic

PROPERTY :Raimon Land Plc said yesterday that it expected a small 2007 net profit after a net loss last year.

Raimon Land, 21.23% owned by a unit of the Dubai government-owned investment arm Istithmar, expected a better net profit next year on revenues of at least three billion baht, said company director Kitti Tungsriwong.

"We should have a small net profit this year," he said. "But the net profit for next year should be much better on the back of our good presales this year."

The company expects presales from housing projects, including condominiums in Bangkok, to reach 7-8 billion baht this year and to be realised as revenues over the next two years.

Gross margins for next year would be close to this year, at least 30%, he said.

Raimon plans three or four new housing projects worth 18-19 billion baht next year, mainly condominiums, and would spend 1-2 billion baht on acquiring land, he said.

It would fund them with bank loans and cash and planned a joint investment in housing projects with foreign investors such as Lehman Brothers, he said.

RAIMON shares closed yesterday on the SET at 1.00 baht, up four satang, in trade worth 6.17 million baht.

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Exim sells NPAs

FINANCE :The Export-Import Bank of Thailand yesterday closed the sale of 8.2 billion baht worth of non-performing loans to Sukhumvit Asset Management.

Exim president Apichai Boontherawara said the transaction would reduce the bank's non-performing loans to 2.27 billion baht, or 4.5% of total loans and interest receivables, from 15.93%.

He also said the bank expected to reach its net profit target of 480 million baht for the full year. The state-owned bank reported profits of 225.26 million baht for the first half, up from 141.63 million the year before.

Sukhumvit Asset Management was the high bidder in the auction for the distressed assets held in late October. Exim's financial adviser was Baker Tilly Corporate Advisory Services, with Hunton & Williams acting as legal adviser.

Nampung Wongsmith, the president of Sukhumvit Asset Management, said the transaction would raise its total purchases of NPLs from local banks to 20 billion baht for the year.

Bangkok Post