With around THB5 billion (US$164.3 million) in undeveloped land holdings, Bangkok Commercial Asset Management (BAM) is green lighting property companies to jointly develop residential projects, following approval for the decision from the Bank of Thailand .
The land holdings are spread over several plots, in Rangsit, Bang Na, Chiang Rai, and other locations, and development is expected to begin sometime in the second half of 2011. This development is expected to drive up profit and revenue for BAM, with a net profit of THB1.2 billion (US$39.4 million) through May this year and double that expected by the end of 2011.
Chinese investors are behind a good deal of the demand for the undeveloped land, particularly the plots on Bang Na-Trat road, according to BAM president Sumate Maneewattana. Speaking with The Nation, Sumate went on to note that the construction of mammoth shopping center China City Complex in Bang Na-Trat has played a large role in the stimulation of Chinese demand, which has resulted in “new manufacturing facilities and warehouses on Bang Na-Trat,” and “a rise in land prices in the Bang Na area of 10 to 20 per cent.”
Leading local property firms such as Pruksa Real Estate, TCC Land – owned by beverage tycoon Charoen Sirivadhanabhakdi – and Sansiri have expressed interest in buying BAM’s undeveloped land, he said.
Meanwhile, BAM yesterday launched its latest campaign, “Better living: One rai for THB100,000 (US$3,286) annual income”, under which it will offer zero-interest financing for the first three years to customers buying its agricultural land for development into sustainable plantation areas.
There will be just 84 plots available, in celebration of His Majesty the King’s 84th birthday later this year.
Sumate also said the company is proceeding with the plan to list its shares on the Stock Exchange of Thailand.
BAM expects to apply to the Securities and Exchange Commission for a filing by the end of the year, before being listed next year.
Press Release: Chiangrai Times News