Raimon introduces 185 Rajadamri condo

Cambodia Construction News

Target set to sell 30% of 268 units this year

The listed developer Raimon Land Plc, seeing a recovery in the high-end condo market, has introduced its long-awaited 185 Rajadamri luxury project worth 9.62 billion baht, with 30% of units expected to be sold this year.

Raimon does not feel under pressure to speed up sales, as it is confident that prices will increase by 20% after the project is completed in 2013, says Mr Viriot.

Chief executive Hubert Viriot said demand for condominiums in the central business district remains strong while the outlook for Bangkok‘s residential market is positive, in line with the country’s economic prospects.

“We’re ready for growth with projects based in Bangkok, Phuket and Pattaya. 185 is the first project we’ve launched in two years and our first step in expanding in the property market,” he said.

The company secured a 2.79-billion-baht credit facility from Bank of Ayudhya to support development of 185 Rajadamri. The capital will be released when sales reach 30-40% of the project.

“The bank has confidence in our project, the only freehold condominium on Ratchadamri Road, while our competitors within a kilometre or two are offering leasehold ownership ranging from 170,000 to 200,000 baht a square metre,” said Mr Viriot.

185 Rajadamri will be built on the former site of the Cambodian Embassy on Ratchadamri Road, covering more than four rai of land. Rising 35 storeys, it will feature 268 units starting from 61 sq m in size and priced from 179,000 baht per sq m or 250,000 baht per sq m on average.

Mr Viriot said Raimon did not feel under pressure to speed up sales, as it was confident that prices will increase by 20% after the project is completed in 2013. The company plans to market the project abroad through its major shareholder, Kuwait-based IFA Hotels & Resorts, which has an investment network extending to 16 countries.

He believes the strengthening baht will not affect the real estate market, which by its nature entails long-term investment, although it will make an impact on tourism in the short term.

The company plans to buy back IFA’s 15% ownership in The River condominium, which it also developed.

Raimon’s plan to acquire new land for future development will be on a case-by-case basis. It will study land potential and consider whether it is suitable for its target market in the high-end segment.

It will develop two existing beachfront plots in Pattaya of 5-6 rai each into condo projects worth 4-5 billion baht apiece for launch this year or next, depending on the market.

Mr Viriot expects the company will return to profitability this year after posting a loss of 277 million baht last year.

Raimon, which has a debt-to-equity ratio of 2, has targeted revenue of 4 billion baht this year, realised mainly from units transferred to owners at its Northpoint project in Pattaya.

Shares of Raimon closed yesterday on the Stock Exchange of Thailand at 59 satang, up two satang, in trade worth 41.4 million baht.

Source: http://www.bangkokpost.com/business/economics/197746/raimon-introduces-185-rajadamri-condo

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