Golden Land Property ramps up investment budget

Construction News

SET­listed developer Golden Land Property Development Plc (GOLD) has raised its annual land investment budget to 3 billion baht from the usual 1-2 billion after securing new funding in January.

According to Somboon Wasinchutchawal, senior executive vice-president for finance and accounting, new funds worth 4.97 billion baht were made available following a capital injection by a new shareholder, Singapore-­listed property firm Frasers Centrepoint Limited, through its subsidiary Frasers Property Holdings (Thailand) Co.

In January, Frasers purchased 685.7 million new shares of Golden Land at 7.25 baht each. As a result, Frasers became the company’s second-largest shareholder at 29.51%, following Univentures Plc (UV), which currently holds 39.28% after dropping from 55.73%.

“The new funds can help us boost our investment in land acquisition, where we will focus on single dwelling and townhouse development,” said Mr Somboon.

Univentures, Frasers Centrepoint and Frasers Property Holdings (Thailand) Co are owned by liquor tycoon Charoen Sirivadhanabhakdi, the 2016 richest Thai ranked by Forbes magazine.

Of the total new funds, 3 billion baht will be used to buy new plots of land for residential development, up from only 1 billion baht last year.

Some 1.9 billion baht will be used to develop the Sam Yan Project on a 14-rai site where Golden Land and Thipphatthana Co, also one of Mr Charoen’s property firms, will co-develop a mixed-use project worth 8.5 billion baht.

The plot is owned by Chulalongkorn University, which gave a concession under a leasehold contract to Golden Land and Thipphatthana.

The project will comprise office, residential and retail space. Upon receiving approval following an environmental impact assessment, construction is set to get under way by the third quarter.

Mr Somboon said some part of the new funds was used to reduce its debt-to-equity ratio to 0.7 times, down from 1.27 at the end of 2015.

Other funds will be used for residential development this year.

Golden Land in 2016 will launch a total of 15 new projects worth a combined 16.35 billion baht.

It aims to achieve 14 billion baht in presales and 8.6 billion baht in revenue by the end of 2016, up from 13.52 billion baht and 7.3 billion baht last year, respectively.

It currently has housing inventory worth 20 billion baht, 2 billion of which comprises units ready to sell and transfer by April 28, 2016, the last day for the property tax incentives.

GOLD shares closed yesterday on the Stock Exchange of Thailand at 6.60 baht, up 10 satang, in trade worth 11.8 million baht.