Thailand: City Realty to develop condominium, services apartment project on Wireless Road.

(From Thai Press Reports)

Section: Corporate News - City Realty Co Ltd, the property arm of the Sophonpanich family, plans to develop a condominium and serviced apartment complex worth five billion baht on Wireless Road in mid-2006, according to president Chali Sophonpanich, the Bangkok Post reports.

He said the company would spend three billion baht to develop 50,000 square metres of residential space, half of which would be for rent. The company earns a 70% margin from renting serviced apartments and 30% from condominium sales.

"We have to do both in order to obtain recurring income from rents." The company acquired the eight-rai plot 15 years ago and it is now worth an estimated 1.5 billion baht. Unit prices will start at 100,000 baht per sq m.

The company also plans three condominium buildings next year on a 10-rai site on Royal City Avenue, with about 600 units priced starting from 1.5 million baht.

"Our sources of funds for each development will come from both our own cash and loans equally," said Mr. Chali. "The new projects require a huge investment so we will increase our capital by another 800 million baht by next month." City Realty has registered capital of four billion baht with the Sophonpanich family, the major shareholders of Bangkok Bank, holding 40%. Bangkok Bank holds ...