NC Housing plans to enter condo market

20% growth targeted after restructuring

The listed developer NC Housing Plc (NCH) targets an annual growth in a range of 20% to 25% and plans to enter the condominium market this year after restructuring its finances by decreasing short-term loans.

Managing director Somchao Tanterdtham said the company recorded higher sales last year which increased its financial liquidity. Debt-to-equity ratio continued dropping to 0.58 time as at the end of 2011 from one time two years ago.

“Our financial status is strong enough to develop condominium project,” he said. “It will be a learning curve for us in the high-rise segment. When the condominium market booms, we will be ready for it.”

Its condominium projects will be valued at 200-500 million baht each, with unit prices of 1-2 million baht.

This year, the condominium investment will be only 10-20% of the total.

In face of rising wages, the company will apply prefabrication construction technology on a larger scale. It will apply the technology to duplex houses at two new projects worth a combined 800 million baht this year, or 10% of all units. Last year, the technology was applied to 10 units.

The move will help speed up construction and revenue booking.

Also in 2012, NCH plans to launch six new projects worth 3.47 billion baht in total. They will comprise four low-rise housing projects and two condominium projects. Around 100-200 million baht will be used to buy new plots of land. Last year, it spent 200 million baht in buying two plots for launches this year.

During the first two months of 2011, NCH had 300 million baht in sales, indicating a recovery since the great floods late last year. “Though many homebuyers still lack confidence and the property market is expected to get sluggish this year, we believe to achieve our annual sales target based on the two-month performance,” he said.

NCH targets 2.7 billion baht in sales this year, up from 2.54 billion baht in 2011. Revenue was projected at 1.7 billion baht from 1.48 billion baht last year, up from 1.19 billion baht in 2010. It had sales backlog of 2.7 billion baht with around 500 million baht realised this year.

The 18-year-old developer yesterday launched a new logo in a 10-million-baht rebranding. The logo’s colours were changed from green and orange to green, grey and black.

“The new logo represents the new segment we plan to tap this year with a monolith column, representing condominiums.”

NCH shares closed yesterday on the Stock Exchange of Thailand at 1.26 baht, up two satang, in total trade of 3.80 million baht.

  • Published in Bangkok Post: 29/02/2012 at 02:43 AM
  • Newspaper section: Business
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