Sena takes cautious approach

Construction News

SET-listed developer Sena Development Plc plans to launch nine new residential projects this year worth a combined 5.3 billion baht.

It aims to achieve 4.52 billion baht in presales by the end of this year with growth of 27% from a year before.

Despite the potential growth, deputy chief executive Kessara Thanyalakpark said the company will remain cautious and conservative as there are still risks from a slowing economy and oversupply in the housing market.

“We are ready to invest but need to be more cautious,” she said. “We plan to spend 1 billion baht this year with 800 million for land acquisitions to launch new housing projects next year and 200 million for the solar business.”

Sena projects 3.57 billion baht in revenue this year, with 3.08 billion or 87% from housing development, up 58% from 1.94 billion last year.

Around 250 million baht or 7% will be from recurring income including a golf course in Pattaya, warehousing, serviced apartments and a community mall, up 21% from a year earlier. The remaining 238 million baht or 6% is to come from the solar business, up from 22 million last year.

Over the next few years, it aims to have 80% of income from housing development and 10% each from recurring-income properties and solar.

Next year Sena will start investment in a new office building, Aspiration One, with a construction area of 40,000 square metres on a leasehold plot owned by the Crown Property Bureau. It will co-invest with Aira Property and contractor Sangfa Construction and Engineering.

In the first quarter, Sena recorded around 1 billion baht in presales as sentiment picked up in March after a sluggish first two months. Many homebuyers waited to learn more about the government’s low-cost housing scheme.

To join the scheme, Sena has five projects with 1,000 total units worth 1.5 billion baht that will be ready to transfer within the year. Unit prices range from 870,000 to 1.5 million baht.

SENA shares closed yesterday on the SET at 2.52 baht, unchanged, in trade worth 11.5 million baht.