Asian Property Development will spend Bt10 billion on 12 residential projects worth Bt21.27 billion this year after delaying new launches since last year's fourth quarter.
CEO Anuphong Assavabhokhin said the company would use the budget to change its business strategy to one of aggressive investment between now and next May.
Bt4 billion will go towards buying undeveloped land on top of Bt700 million-worth already purchased for development in this year. The other Bt6 billion will be used to develop the 12 new projects, worth Bt21.27 billion.
Seven of the projects will be condominiums worth Bt13.9 billion, including The Address Pathumwan and Life @ Lat Phrao 19. The other five condos will be located in the Phya Thai, Sathorn, Asoke-Phetchaburi, Sukhumvit 28 and Ratchadaphisek-Huai Khwang areas.
The remaining five projects are low-rise residences. These include three detached-house projects: The Centro, on Ram-Indra Road; The Centrao, on Rattanathibet Road; and The City, near the Soi Onnuj Airport Rail Link.
There are also two townhouse projects:Baan Klang Muang Ekamai-Ram-Indra and Baan Klang Muang Lat Phrao.
"We're very confident about launching our new projects after seeing strong customer demand. In the month since the Songkran riots, our sales have averaged Bt100 million a week," he said.
Some customers are even paying cash - especially middle-income earners - for units costing between Bt3 million and Bt5 million, Anuphong said.
Half of the Bt10-billion budget will come from a company debenture launched in the first quarter and the rest from cash flow.
However, if the company need more money, it can issue another Bt4-billion debenture approved by shareholders last month, Anuphong said.
The company now has an Bt11.85-billion backlog of presales awaiting transfer to customers, nearly Bt6 billion of which will be transferred to customers and booked as revenue this year. As a result, Asian Property Development expects this year's revenue to match last year's, or even rise 10 per cent if first-quarter sales can be maintained.
The company achieved revenue of Bt2.8 billion for a net profit Bt481 million in the first quarter, up 114.1 per cent and 217.3 per cent, respectively, from the same period last year.
However, the company estimates second-quarter revenue will be lower than in the first, due to some projects being transferred to customers no sooner than the third quarter.
However, the company believes demand for residential projects in the second half of the year will better than in the first half, thanks to the new projects, Anuphong said.