Further evidence of confidence and consolidation in the Thai Property Industry
LPN one of the leading developers of entry level condominiums announced to the Stock Exchange of Thailand that they had acquired a 5,921 square wah (23,684 square metre) plot of land at Ratchayothin from another smaller publicly listed Developer, Metrostar Property.
This is further evidence of confidence among the larger developers to proceed with major projects.
It is also evidence of further consolidation in the property development industry which is now dominated by the larger developers.
It appears that Thai banks have decided to focus on supporting a small group of larger developers, mainly publicly listed companies which has made it harder for smaller listed and private developers to obtain funding.
LPN paid 680,915,000 baht for the plot (115,000 baht per square wah) where they intend to develop four 22-storey condominium buildings with a total of 1,964 units.
The company expects that the total revenue will be three billion baht with construction commencing in April 2010 and completion in June 2011.
The company estimates that the gross profit margin will be 30%.
This is the most expensive land plot that LPN have acquired over the last 12 months and it is also the closest to the city centre.
