SET-listed MBK Plc plans to launch five new residential projects in Greater Bangkok worth a combined 6.85 billion baht during 2017-19, aiming to have 1.2 billion baht in revenue a year in 2017-18 and 4 billion baht in 2019.
Hatchapong Phokai, managing director of MBK subsidiary MBK Real Estate Co, said the two projects will entail high-priced single detached houses with units priced from 50 million baht.
"These two projects will be located in locations where high-end segment demand is strong, comprising a location near a golf course and a site on Rama IX Road," Mr Hatchapong said yesterday.
Quaritz, the project on Rama IX Road, is worth 500 million baht and will comprise 14 single detached houses priced at 50-70 million baht. To be launched by year-end, the project will occupy a four-rai site near The Nine Center Rama 9, one of MBK's community malls.
The Rama IX project was initially planned to be a condominium, but the company changed plans as competitors launched condominium projects nearby.
The condominium was also not feasible for the location, as the project would require sufficient car parking to meet buyers' needs.
The second high-end single house project will be Riverdale Residence, worth 2 billion baht, to be located on a 64-rai site near Riverdale Golf and Country Club in Pathum Thani, one of the group's four golf courses.
To be launched in either November or December this year, it will comprise 56 units, each on a plot sized 300-600 square wah and priced between 50-120 million baht. Four units worth 200 million baht have been booked.
Near the golf course, the company will launch the second phase of Park Riverdale, a middle- to upper-end project, with 28 single detached houses priced between 7-15 million baht after recording 20 units sold from 36 units in the first phase.
The company expects these three projects will generate 700 million baht in revenue in the second half after recording 500 million baht in the first half.
Target revenue of 1.2 billion baht is down from 1.5 billion baht last year as 2016 performance was mainly derived from condo unit sales, which were driven by the property tax incentives that ended in April 2016.
To boost sales at residential projects near the golf course, the company will spend 50 million baht to develop a sports complex, with the first phase due to be completed in mid-2018. It is also renovating Tinidee Hotel, with 80 rooms near the golf course, due to reopen early next year.
MBK is in possession of a total of 1,500 rai in Muang Pathum Thani, where two golf courses including Riverdale Golf Club and Bangkok Golf Club are located.
The two golf courses occupy around 700-800 rai, while the three residential projects occupy 500 rai.
MBK shares closed yesterday on the Stock Exchange of Thailand at 15.20 baht, up 20 satang, in trade worth 10.6 million baht.
