Golden Land Property plans to boost project capacity to more than 40 billion baht a year

Construction News
An artist’s rendition of townhouses at Golden Town South Pattaya-Sukhumvit.

Golden Land Property plans to boost project capacity to more than 40 billion baht a year

27 August 2019

SET-listed Golden Land Property Development Plc (GOLD) plans to scale up its development of residential projects to more than 40 billion baht a year.

The larger capacity will put it among the top five developers in terms of residential project value launched per year, in addition to Pruksa Real Estate, AP Thailand, Sansiri and Supalai.

Somboon Wasinchutchawal, Golden Land’s senior executive vice-president for accounting and finance, said the strategic partnership with SET-listed industrial estate developer Frasers Property (Thailand) Plc (FPT) is a powerful synergy as the new parent firm has a land bank and strong financial capital.

On Aug 14, FPT completed its acquisition of 94.5% of shares in Golden Land through a voluntary tender offer.

“The synergy can help both Frasers and Golden Land,” he said. “We have a residential and commercial development team and Frasers has a land bank as raw material.”

One of FPT’s potential plots for development is 4,315 rai on Bang Na-Trat Road KM32 in Bang Bo district of Samut Prakan, where Golden Land will develop residential projects including single houses, townhouses and duplex houses.

The plot was acquired by TRA Land Development Co, a joint venture between FPT, holding 50%, and Rojana Industrial Park Plc and Asia Industrial Estate Co each holding 25%. It was bought via auction last year at a cost of 8.9 billion baht.

FPT is doing a township master plan for the plot, which will comprise industrial-related properties, residential projects and offices or a business park.

Development on a phase-by-phase basis will start next year and take around 10 years to complete, according to FPT.

FPT was renamed from Ticon Industrial Connection early in the year after Frasers Property Holdings (Thailand), owned by the Sirivadhanabhakdi family, became the major shareholder in 2017.

“This plot has potential as it is a gateway bridging Bangkok and the Eastern Economic Corridor,” said FPT’s president Sopon Racharaksa.

He said the acquisition in Golden Land will boost FPT’s annual revenue from 5-6 billion baht to more than 22 billion, while their combined assets were valued at more than 90 billion.

Golden Land plans to launch 28 new residential projects worth a combined 33 billion baht in 2019. All will be single detached houses, townhouses and duplex houses in Greater Bangkok and key provinces.

During the first six months, Golden Land recorded a net profit of 1.18 billion baht on revenue of 8.78 billion baht, up 23% and 20%, respectively.

The company aims to have 19.8 billion baht in revenue by the end of this year.

Of the six-month revenue, 947 million baht was from commercial properties, up from 867 million in the same period last year.