Ananda buys land near Udom Suk for budget condos

Ananda Development has signed a sale and purchase agreement for the acquisition of a new condominium site on Sukhumvit Road worth Bt825 million.

The company will raise funds on the Stock Exchange of Thailand to finance the investment.

The land is about 600 metres from the Udom Suk Skytrain station in Bangkok.

Chief executive officer Chanond Ruangkritya said Ananda had signed up for this prime condo site within a week of becoming a publicly listed company.

"Ananda is the current leader in Bangkok mass-transit living and we will continue to source attractive land plots near the train stations that meet our internal gross margin criteria of 35 per cent. This is just the first of a series of acquisitions planned for the very near term as we continue to [embark] on the growth plan that we promised to investors" at the initial public offering, Chanond said.

Located in the upper Sukhumvit area, the site will see the launch of Ananda's new budget brand, Elio. Prices will start at less than Bt1 million per unit, with an expected average selling price of about Bt1.2 million each.

Udom Suk Station offers future residents good connectivity to Thong Lo, six stops towards the entertainment hub of Bangkok, and the central business district - 10 stops to Phloenchit Station.

With a site area of nearly 10,000 square wah (40,000 square metres), this development will have an estimated gross floor area of 105,000sqm and a project value of Bt4.65 billion. The land purchase price is Bt85,000 per square wah, allowing the company to offer lower-priced units without having to lower the company's gross and net margins.

It will be launched in three phases. The first phase is expected to be launched in the first quarter of the new year, with completion and transfers expected to commence around the first quarter of 2014.

As of November 30, Ananda had an aggregate contracted condominium backlog of Bt8.2 billion with additional condominium inventory of Bt4.5 billion. The company expects about 80 per cent of the contracted condominium backlog and condo inventory to be recognised and transferred next year, with the remainder in 2014.

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Article source: http://www.thethailandlinks.com/2012/12/16/ananda-buys-land-near-udom-suk-for-budget-condos/