Supalai ready to splash out B300m on Saraburi plots
SET-listed developer Supalai Plc plans to spend 300 million baht to buy plots near its resort in Saraburi to develop an elderly home with 100 units to capture rising demand in this segment.
Chief executive Prateep Tangmatitham said demand for elderly homes in Thailand will be on the rise as the country becomes an ageing society.
“We are in talks to buy plots sized 16-17 rai near our resort to develop the project,” he said. The resort is Supalai Pasak Resort Hotel & Spa in Kaeng Khoi district of Saraburi province, a two-hour drive from Bangkok.
The company is designing the project, which will be named Supalai Elderly Home & Wellness Center, with 100 one-bedroom townhome units and usable area of 50-60 square metres each.
The unit price will be 1 million baht for a 30-year lease contract or a lifetime period. But the units will not be inheritable. Conditions will be finalised by the end of the year, with construction starting in late 2018 and being completed next year.
After opening the resort over 20 years ago, Supalai also plans to spend 20 million baht to renovate it and add new facilities. Currently, the room rate is 1,000 baht per night.
Mr Prateep said the company this year plans to invest in Australia’s housing market by launching its eighth, ninth and 10th projects after seeing strong demand in the housing market there.
“Our first six projects launched in Geelong, Melbourne and Brisbane have had good sales rates as the housing market in Australia is on the rise,” he said. “Housing prices at one of our projects increased 30% year-on-year. It is a very good investment for us.”
Supalai aims to use 10% of the value of its total assets to invest in property abroad. The company’s assets total 50 billion baht, while Supalai has invested 2.5 billion baht in Australia over the past three years.
Next week Mr Prateep will visit Ho Chi Minh City to study the residential market there and seek investment opportunities.
In Thailand, the property market this half has shown promising signs, which will continue in the second half, said Supalai managing director Tritecha Tangmatitham.
“The single-house and townhouse market in Greater Bangkok has seen strong growth because of lower new supply, yet higher demand,” he said. “New launches are limited as land prices have risen consecutively.”
In the second half, Supalai plans to launch 21 single-house and townhouse projects worth 14 billion baht and five new condominium projects worth 20 billion.
One of the new condo projects will be Supalai Veranda Sukhumvit 117 on a four-rai site near the future Poochao Samingprai station worth 2.57 billion baht. The project will be a 34-storey tower with 1,105 units priced from 1.6 million baht.
Half the total units will be launched this month. Some 25% will be offered for sale to foreign buyers through overseas agent Angel Real Estate, which is working on behalf of Chinese clients.
To avoid risks, the company will ask for a 25% down payment of the unit price to be paid on the booking date by foreign buyers, Mr Tritecha said.
SPALI shares closed Wednesday on the Stock Exchange of Thailand at 24.50 baht, down 10 satang, in trade worth 49.5 million baht.