EMC squares away entry into real estate sector

Construction News


Mr Chumpol says state megaprojects make this the right time for EMC’s move.

SET-listed construction firm EMC Plc plans to enter the property sector to capitalise on anticipated urbanisation and planned government infrastructure development.

Chief operations officer Chumpol Issarangkura Na Ayutthaya said the move was in line with long-held intentions.

It is also timely, as the government has been expanding infrastructure networks and bringing urban development to Bangkok’s suburbs as well as upcountry.

“We have been in the construction business for 36 years and are widely accepted in the industry,” he said.

“Now it’s time for us to leverage our experience and expertise into property development.”

Mr Chumpol said EMC expected to raise 13.2 billion baht in revenue from property development over the next five years including 1.05 billion this year.

To achieve that goal, the company intends to take over existing projects from others and develop its own new projects.

The company expects its construction business will generate 900 million baht this year and maintain an annual growth rate of 10%.

It believes its construction business will generate no less than 5.5 billion over the next five years.

Executive vice-president Setthavat Tangvacharapongse said EMC was set to invest 17.4 billion baht in property projects over five years.

For 2015, it plans eight worth 6.53 billion baht, seven of them takeovers.

They include the North Beach Resort @ Bang Saen project and the North Land Condominium project by the North Group worth a combined 2.11 billion; the Station One China Town project by Imperial Land, worth 657 million baht; and the Siam Iyara Resort Chon Buri project by Siam Bangkok Development, valued at 360 million.

The three other takeover projects are American Town, Siam Tara Mantra and the Venice of the East, all developed by Siam Grand Property and worth a combined 2.15 billion baht.

EMC will also develop The Landmark Community Mall on a 21-rai plot in tambon Mahachai of Samut Sakhon’s Muang district using 1.25 billion baht of its own. The plot is leased from the State Railway of Thailand under a 30-year contract.

“Revenue recognition is expected to increase by 150% in 2016. With the goal of achieving the 10% annual growth until 2019, EMC set its sights on generating 13.2 billion baht in revenue over the next five years,” Mr Setthavat said.

EMC shares closed yesterday on the SET at 91 satang, up three satang, in trade worth 67.7 million baht.



Source: http://www.bangkokpost.com/property/news/510669/emc-squares-away-entry-into-real-estate-sector