Golden Land Property Development to raise $135.8m via new REIT in two years

Construction News

Golden Land Property Development to raise $135.8m via new REIT in two yearsGolden Land Property Development Pcl, the Thailand-based residential developer, is planning to set up a new real estate investment trust with the 4.7-billion-baht assets ($135.8 million) in 2018.

The main asset it will turn into the REIT is FYI center, which comprise a 3.6-billion-baht office building and a 1.1-billion-baht hotel.

“Currently, the office building has the occupancy rate at 70 per cent. We expect to boost it to 90-95 per cent before we launch the REIT in the next two years,” Somboon Wasinchutchawal, senior executive vice president for accounting and finance, said.

Golden Land plans to double its revenue from 5.3 billion baht in 2015 to more than 10 billion baht in 2016. The net profit margin is likely to surge from 7.68 per cent last year to 10 per cent this year, said the company official.

“We aim to increase our revenue to 20 billion baht by 2020. That means we have to have an annual growth of 20-25 per cent from this year onward,” he added.

In line with its aggressive investment strategy, the company has allocated a budget of 4.5 billion baht this year to purchase the land for developing new projects.

It has already launched five projects worth 5.68 billion baht in the first half of this year, and it will launch 10 more projects worth around 10 billion baht for the rest of this year.

Of the total 15 projects, one is a single housing project worth 2.2 billion baht and the others are town home and semi-detached housing projects.

It will issue the debentures worth three billion baht by the first quarter of 2017. He said the proceeds will be used to buy the land and pay the construction cost as it wants to lower its financial cost to below 4 per cent from currently 4.57 per cent.