Mr. Suchad Chiaranussati, Managing Director of MR Sukhumvit Co. Ltd, the owner of “Millennium Residence @ Sukhumvit Project” said the project is now completed. The development’s unique architecture is conceived by Design Consultant, Atkins Ltd. of the United Kingdom, which is also the designer of world renowned Burj Al-Arab in Dubai.
The project is sited on a very unique and rare large piece of land area of over 12 Rai, consisting of 4 towers with 51 storey and 53 storey buildings, comprising of 604 apartment units, situated in a very residential vicinity in downtown Sukhumvit area. Located in the heart of bustling Bangkok with easy access to BTS and MRT stations, it is located on Sukhumvit Soi 16-20 within close proximity to Asoke, Rama IV roads and the CBD areas, with an approximate project value of about 10 Billion Baht. Set amidst a luscious landscape of trees and soothing water features, with many facilities like state-of the-art clubhouse, gymnasium, swimming pool, tennis court, function room, children’s playground, one would be spoilt for choice.
The project was carefully designed to be environmentally friendly and responsible, becoming the first project in Thailand to be awarded the prestigious Green Mark Gold Award by BCA International Pte. Ltd. of Singapore. The very unique and ultra modern look of aluminum and glass curtain wall façade will always enable the condominium to always look pristine and new.
Owners of the units in the condominium will enjoy stunning views of Benjakitti Lake and Bangkok’s skyline. With only 4 units per floor, allowing excellent privacy, the residents can enjoy the panoramic views from every room of their apartments.
Mr. Suchad added that at this time the project has achieved over 85% sales with a value of about 7 Billion Baht. Sales to date have been to high end customers, both Thai and Oversea buyers and expatriates in approximate equal proportions. Overseas buyers have come from all over the world such as Korea, USA, UK, Australia, Japan, Germany, Switzerland, Vietnam, Norway, Singapore and
Hong Kong etc. At present, the transfer of ownership is in process, commencing with some buyers being invited to inspect their units in December 2009.
Vital factors that help the successful sales of the project are the effective area usage layout and floor plan which has only 4 units on every floor i.e. every unit is a corner apartment affording a high degree of privacy, and enjoying stunning scenic views of Benjakitti Park as well as panoramic view of the Bangkok Skyline. The stunning ultra modern architecture is also another strong selling point of the development. It’s convenient location in Sukhumvit 16-20 is a very strong selling point for the condominium.
Speaking of forthcoming marketing and sales efforts, Khun Suchad advised we plan to work closely with banks and furniture stores to be able to provide total solution packages to offer special mortgage rates and competitively priced quality furniture which will be essential to buyers. As the project is now completed, we will move the sales office and show flats to the actual condominium itself so that potential customers can have a real feel for the beauty of the development and it’s extensive facilities.
As for the world economy, we have been through a near collapse of the global financial system and trade flows were affected hitting the real economy hard especially export oriented Asian economies. The coordinated efforts by the governments around the world have prevented a much more serious decline on the economy. We are now in a recovery period, whilst the real estate prices around the world have seen a significant mark down in some markets especially where high leverages were allowed through financial engineering. For example, in some markets the price levels have fallen 30-50% from the peak in early 2008.
On the overall picture of Thailand’s real estate market and investment trends from local and foreign investors, K’ Suchad strongly believes that property price levels in Thailand is still low relative to neighboring countries such as Vietnam, Malaysia, Hong Kong and Singapore. Our real estate price is cheap using any benchmark measurements. The value is good especially if one is to believe that inflation will return in the future. Alternative investment in cash and financial instruments yield very low returns, often below inflation rate. I believe that buying real estate in Thailand especially in Bangkok is of exceptionally good value and should have reasonable upside.
Thailand’s extensive infrastructure, excellent flight connections to around the globe, state of the art connectivity and communication network, together with it’s advanced medical treatment and health care services, Thailand will remain an attractive destination for foreign investors to invest in real estate here.
Tuesday, December 15, 2009
Moody's says newly listed Chinese property developers face challenges
Moody's Investors Service says that eight major Chinese property developers succeeded in substantially enhancing their capital bases and liquidity positions during September-December
2009 with a total raising of HK$38.5 billion (US$4.9 billion) through IPOs on the Hong Kong Stock Exchange, but these improvements to their financial fundamentals could prove short lived.
"Debt leverage is likely to rise again and exceed the levels seen at the time of the IPOs as the sector continues with its ingrained strategy of pursuing high growth and bigger scale," says Peter Choy, a Moody's VP and Senior Credit Officer.
"It was common for the debt to total capitalization of those developers already rated by Moody's to increase -- some by 10-15% -- in the 2 years after their IPOs, and such a similar trend is therefore expected for most of the recently listed developers," says Choy.
"Most usually, funds are spent on the expansion of land banks and larger scale developments, and experience indicates that Chinese developers generally come over budget in their land acquisitions," says Choy.
Choy was speaking on the release of a special comment -- authored by him and Kaven Tsang, a Moody's Assistant Vice President and Analyst -- on the implications of recent IPOs by Chinese property developers.
"Once their listings are complete, developers will experience -- in line with past examples -- strong shareholder pressure to grow," says Choy.
"As a result, the newly listed companies are likely to see debt leverage increase over the next 2 years."
Even though the Chinese real estate market in 2010 is expected to be stable, conditions will not be strong enough to support the very aggressive targets set by the newly listed companies, and their reliance on strong pre-sales to reduce their borrowing needs may prove misplaced, the report says.
In addition, Chinese banks will likely strengthen their capital bases and reduce loan growth in 2010 to help reinforce the stability of the banking system; and, as such, availability of mortgage finance to property purchasers will not be as strong as in 2009, the report says.
2009 with a total raising of HK$38.5 billion (US$4.9 billion) through IPOs on the Hong Kong Stock Exchange, but these improvements to their financial fundamentals could prove short lived.
"Debt leverage is likely to rise again and exceed the levels seen at the time of the IPOs as the sector continues with its ingrained strategy of pursuing high growth and bigger scale," says Peter Choy, a Moody's VP and Senior Credit Officer.
"It was common for the debt to total capitalization of those developers already rated by Moody's to increase -- some by 10-15% -- in the 2 years after their IPOs, and such a similar trend is therefore expected for most of the recently listed developers," says Choy.
"Most usually, funds are spent on the expansion of land banks and larger scale developments, and experience indicates that Chinese developers generally come over budget in their land acquisitions," says Choy.
Choy was speaking on the release of a special comment -- authored by him and Kaven Tsang, a Moody's Assistant Vice President and Analyst -- on the implications of recent IPOs by Chinese property developers.
"Once their listings are complete, developers will experience -- in line with past examples -- strong shareholder pressure to grow," says Choy.
"As a result, the newly listed companies are likely to see debt leverage increase over the next 2 years."
Even though the Chinese real estate market in 2010 is expected to be stable, conditions will not be strong enough to support the very aggressive targets set by the newly listed companies, and their reliance on strong pre-sales to reduce their borrowing needs may prove misplaced, the report says.
In addition, Chinese banks will likely strengthen their capital bases and reduce loan growth in 2010 to help reinforce the stability of the banking system; and, as such, availability of mortgage finance to property purchasers will not be as strong as in 2009, the report says.
Thursday, November 19, 2009
Three State Banks Ink MOU with Five Associations to Boost Thai Construction Business Abroad
EXIM Thailand, Krung Thai Bank and SME BANK reached an agreement with 5 construction-related associations to provide financial support for Thai contractors in order to enhance their competitiveness abroad, especially in 6 target countries, namely, Libya, Bahrain, Qatar, India, Vietnam and Brunei.
Dr. Apichai Boontherawara, President of Export-Import Bank of Thailand (EXIM Thailand); Mr. Apisak Tantivorawong, President of Krung Thai Bank Public Company Limited; and Mr. Soros Sakornvisava, President of Small and Medium Enterprise Development Bank of Thailand (SME BANK); signed a Memorandum of Understanding (MOU) with representatives from 5 associations, namely, Consulting Engineers Association of Thailand (CEAT), Association of Siamese Architects under Royal Patronage, Thai Contractors Association under H.M. the King’s Patronage, Thai Real Estate Association, and Thai Electrical & Mechanical Contractors Association at the Government House on November 5, 2009. The MOU signing ceremony was presided over by Mr. Abhisit Vejjajiva, Prime Minister. The objective of this agreement is to provide financial support for Thai entrepreneurs in the construction and real estate development industries seeking overseas contracts, thus, making them more competitive in the global arena.
Under the MOU, the three banks will cooperate in giving support and financial assistance to members of the 5 associations wishing to bid for contracts abroad. The goal is to enable Thai contractors to succeed more in overseas project bidding, especially in 6 target countries, namely, Libya, Bahrain, Qatar, India, Vietnam and Brunei. In the future, the target country list is expected to include other countries in the ASEAN and African regions.
Dr. Apichai Boontherawara, EXIM Thailand’ President, said after the signing ceremony that the cooperation between the 3 banks and the 5 associations is aimed to sharpen the competitive edge of the Thai construction sector on the world stage and help Thai contractors achieve sustainable growth while earning foreign exchange. This is in line with EXIM Thailand’s mandate as a development bank and also addresses the Government’s economic stimulation policy.
Dr. Apichai Boontherawara, President of Export-Import Bank of Thailand (EXIM Thailand); Mr. Apisak Tantivorawong, President of Krung Thai Bank Public Company Limited; and Mr. Soros Sakornvisava, President of Small and Medium Enterprise Development Bank of Thailand (SME BANK); signed a Memorandum of Understanding (MOU) with representatives from 5 associations, namely, Consulting Engineers Association of Thailand (CEAT), Association of Siamese Architects under Royal Patronage, Thai Contractors Association under H.M. the King’s Patronage, Thai Real Estate Association, and Thai Electrical & Mechanical Contractors Association at the Government House on November 5, 2009. The MOU signing ceremony was presided over by Mr. Abhisit Vejjajiva, Prime Minister. The objective of this agreement is to provide financial support for Thai entrepreneurs in the construction and real estate development industries seeking overseas contracts, thus, making them more competitive in the global arena.
Under the MOU, the three banks will cooperate in giving support and financial assistance to members of the 5 associations wishing to bid for contracts abroad. The goal is to enable Thai contractors to succeed more in overseas project bidding, especially in 6 target countries, namely, Libya, Bahrain, Qatar, India, Vietnam and Brunei. In the future, the target country list is expected to include other countries in the ASEAN and African regions.
Dr. Apichai Boontherawara, EXIM Thailand’ President, said after the signing ceremony that the cooperation between the 3 banks and the 5 associations is aimed to sharpen the competitive edge of the Thai construction sector on the world stage and help Thai contractors achieve sustainable growth while earning foreign exchange. This is in line with EXIM Thailand’s mandate as a development bank and also addresses the Government’s economic stimulation policy.
Sunday, November 8, 2009
Houses priced from B5m back in favour
Houses priced higher than 5 million baht will dominate the homebuilding market next year as demand rises and purchasing power improves, said Suratchai Kuenghakit, vice-president of the Home Builder Association.
More housing designs in the upper price range will also attract buyers, he said yesterday.
From data the association collected at its last fair held in August, units priced above 5 million baht were more popular than other ranges. Sales in this segment doubled from 68 units in each of 2007 and 2008 to 138 units in 2009.
At the same time, sales of units priced from 3-4 million baht baht increased to 94 units from 57 and 70 units in 2007 and 2008 respectively. Units priced at 2-3 million baht grew from 72 and 107 to 121 units in the latest fair.
Mr Suratchai said the competition in the segment of more than 5 million baht would be focused on design with fewer wasteful materials. Usable area will have to meet consumer demand.
The association yesterday projected an estimated homebuilding value of about 11 billion baht in 2009, up 12%from 2008 and higher than a previous target of 10.5 billion baht.
But the number of units will decrease as average prices rise. From the fair, the average price rose from 4.2 million baht in 2008 to 4.7 million baht as brisk sales shifted from lower prices to higher ranges.
The association also found that about 40% of 10,000 respondents in the fair plan to build a house in 2010. It targets 20% of these potential customers or about 2,000 units, and expects the homebuilding business will grow by 9-10% in 2010 due to an improving economy.
The association's president, Panthep Thanchitikul, says opportunities are brighter as middle-income earners have more income, interest rates are low and buyers have more access to mortgage loans.
"Financial institutions are more confident in homebuilding customers as they rarely become non-performing loans," he says.
However, obstacles facing the business are consumers' higher expectations,negative impact from fraudulent home builders, volatile construction prices, lack of skilled labour and the political situation.
Homebuilders should improve management systems and construction technology such as prefabrication, he said.They should compete on service and get together to help each other, says Mr Panthep whose term as president will expire on Nov 27.
More housing designs in the upper price range will also attract buyers, he said yesterday.
From data the association collected at its last fair held in August, units priced above 5 million baht were more popular than other ranges. Sales in this segment doubled from 68 units in each of 2007 and 2008 to 138 units in 2009.
At the same time, sales of units priced from 3-4 million baht baht increased to 94 units from 57 and 70 units in 2007 and 2008 respectively. Units priced at 2-3 million baht grew from 72 and 107 to 121 units in the latest fair.
Mr Suratchai said the competition in the segment of more than 5 million baht would be focused on design with fewer wasteful materials. Usable area will have to meet consumer demand.
The association yesterday projected an estimated homebuilding value of about 11 billion baht in 2009, up 12%from 2008 and higher than a previous target of 10.5 billion baht.
But the number of units will decrease as average prices rise. From the fair, the average price rose from 4.2 million baht in 2008 to 4.7 million baht as brisk sales shifted from lower prices to higher ranges.
The association also found that about 40% of 10,000 respondents in the fair plan to build a house in 2010. It targets 20% of these potential customers or about 2,000 units, and expects the homebuilding business will grow by 9-10% in 2010 due to an improving economy.
The association's president, Panthep Thanchitikul, says opportunities are brighter as middle-income earners have more income, interest rates are low and buyers have more access to mortgage loans.
"Financial institutions are more confident in homebuilding customers as they rarely become non-performing loans," he says.
However, obstacles facing the business are consumers' higher expectations,negative impact from fraudulent home builders, volatile construction prices, lack of skilled labour and the political situation.
Homebuilders should improve management systems and construction technology such as prefabrication, he said.They should compete on service and get together to help each other, says Mr Panthep whose term as president will expire on Nov 27.
Wednesday, November 4, 2009
Seacon Home opens Chon Buri branch
Home-Builder Seacon Home has opened a new branch in Chon Buri province, with sales of Bt200 million targeted for its first year of operation.
Supitcha Chaipipat, the company's general manager, said customers signng a building contract between today and Sunday would receive a special discount of up to 15 per cent, 2 baht of gold and Bt50,000 worth of furniture Index.
Supitcha Chaipipat, the company's general manager, said customers signng a building contract between today and Sunday would receive a special discount of up to 15 per cent, 2 baht of gold and Bt50,000 worth of furniture Index.
Wednesday, October 28, 2009
Seoul Design Olympiad
It's massive wave of whimsical design.
The "Seoul Design Olympiad" kicked off last year following the city's designation as World Design Capital 2010 by the International Council of Societies of Industrial Design. The subtitle this year is "i Design", which promotes the idea that anyone is capable of creating and enjoying good design.
In the belief that design is the solution to the current economic recession, every venue of the Olympiad is hosting a market where visitors can buy and sell their own designs.
When: Ongoing until October 29
Where: Jamsil Sports Complex, Hangang Par & Sinsa-doing
Info: www.SDO.Seoul.go.kr
The "Seoul Design Olympiad" kicked off last year following the city's designation as World Design Capital 2010 by the International Council of Societies of Industrial Design. The subtitle this year is "i Design", which promotes the idea that anyone is capable of creating and enjoying good design.
In the belief that design is the solution to the current economic recession, every venue of the Olympiad is hosting a market where visitors can buy and sell their own designs.
When: Ongoing until October 29
Where: Jamsil Sports Complex, Hangang Par & Sinsa-doing
Info: www.SDO.Seoul.go.kr
HomePro events
HomePro will hold two major events this quarter to drive sales to meet the annual target of Bt20 billion.
The first is the annual HomePro Expo from October 16-25. The company expects to realise Bt600 million in sales from it. The other is a year-end event-the super shock sale.
The first is the annual HomePro Expo from October 16-25. The company expects to realise Bt600 million in sales from it. The other is a year-end event-the super shock sale.
B3bn CK issue
Ch. Karnchang Plc (CK),the country's second- biggest listed construction company, plans to sell up to 3 billion baht worth of bonds.
The company will sell up to one billion baht in two-year bonds and 2 billion baht in four-year securities,it said in a filing to the Securities and Exchange Commission yesterday. The two-year bonds would offer a coupon rate of 5% and the four-year bonds between 5.40% and 6.20%, it said.
The company will sell up to one billion baht in two-year bonds and 2 billion baht in four-year securities,it said in a filing to the Securities and Exchange Commission yesterday. The two-year bonds would offer a coupon rate of 5% and the four-year bonds between 5.40% and 6.20%, it said.
Tuesday, October 20, 2009
Aussie firm shifts to Phuket
Australia-based swimming pool producer Autumn Solar Pty Ltd will shift its manufacturing base to Phuket to benefit from the Asean Free Trade Area.
The relocation involves a joint-venture with a local pool producer and investment of 50 million baht.
Managing director Steve Merrett said the move from Ulladulla, a coastal town in New South Wales, Australia, to Phuket would help reduce manufacturing costs by 15% to 20% due to lower wages,cheaper raw materials and savings in transportation costs.
The relocation would start this month by moving salt chlorination system production. Full production would be completed within two years when it will close its factory in Australia, he said.
The firm also plans to close a plastics factory in China which will shift to the new centre in Phuket, he said.
"It's an opportunity to have Thailand as our manufacturing base," he said."We can import materials from Australia with zero tax and export the products to China, our main market, and the rest of the world without tax as well."
The firm currently exports 90% of the equipment made at the Ulladulla plant to China, Thailand, Vietnam, Europe and the US. Autumn Solar had a turnover of US$55 million last year, he said.
The company yesterday announced a joint venture with JD Pools 2004(Thailand) which will establish a firm with registered capital of 50 million baht.
Thanusak Phungdet, chief executive of JD Pools, said the firm's factory in Phuket would double to 10,000 square metres with Autumn Solar's relocation.
The company plans to increase its exports from 20% of production to 50%in three years. It targets annual sales of 1 billion baht with the joint venture.
The Thai pool market this year is estimated at about 2 billion baht, up 10%to 15% on last year. JD Pools expects sales of 600 million baht this year, up 12% on 2008 but below its 15% target.
The relocation involves a joint-venture with a local pool producer and investment of 50 million baht.
Managing director Steve Merrett said the move from Ulladulla, a coastal town in New South Wales, Australia, to Phuket would help reduce manufacturing costs by 15% to 20% due to lower wages,cheaper raw materials and savings in transportation costs.
The relocation would start this month by moving salt chlorination system production. Full production would be completed within two years when it will close its factory in Australia, he said.
The firm also plans to close a plastics factory in China which will shift to the new centre in Phuket, he said.
"It's an opportunity to have Thailand as our manufacturing base," he said."We can import materials from Australia with zero tax and export the products to China, our main market, and the rest of the world without tax as well."
The firm currently exports 90% of the equipment made at the Ulladulla plant to China, Thailand, Vietnam, Europe and the US. Autumn Solar had a turnover of US$55 million last year, he said.
The company yesterday announced a joint venture with JD Pools 2004(Thailand) which will establish a firm with registered capital of 50 million baht.
Thanusak Phungdet, chief executive of JD Pools, said the firm's factory in Phuket would double to 10,000 square metres with Autumn Solar's relocation.
The company plans to increase its exports from 20% of production to 50%in three years. It targets annual sales of 1 billion baht with the joint venture.
The Thai pool market this year is estimated at about 2 billion baht, up 10%to 15% on last year. JD Pools expects sales of 600 million baht this year, up 12% on 2008 but below its 15% target.
Tuesday, October 13, 2009
NO-DEPOSIT LOANS RETURN IN UK
Stuart Heathcote and his wife never intended to buy a house this year. Then the UK government offered an incentive that changed their minds: a no-money-down mortgage.
It was the head start they needed to sign a contract for a euro 135,000 (Bt7.11 million) three-bedroom house near Birmingham, the country's second-biggest city. Stuart, who works for the National Health Service, and his wife plan to move in before the end of January.
Easy credit is back in the UK, and this time the government and home-builders are making the loans. Seeking to recover from the worst recession in a generation, Britain is helping as many as 10,000 buyers obtain 100-per-crnt financing through a euro 300 million plan called Home-Buy Direct, at a time when mortgages are scarce and, according to professional services firm Ernst & Young, home prices will "stagnate" for at least two more years.
"It's a catastrophe waiting to happen," KBC Peel Hunt's home-building analyst Robin Hardy said of the plan. "If the only way a certain bit of the market can work is to lend deposits to those people who can't afford a house, it's being done for the industry and not for the first-time buyers."
More than 32.000 potential home-buyers have sought information about the loans, a sign that borrowers are not scared off by a home-price drop accompanied by rising foreclosures and defaults on high percentage loans that outstrip home values. There are currently no plans to expand the plan.
Britain's home-builders have also embraced Home-Buy Direct to revive sales. Barratt Developments, Persimmon, Miller Group and Redrow are offering a combined 7,000 homes through the plan, according to the companies.
"Generally, it has been very good for the industry," said Numis Securities' housebuilding analyst Chris Millington in London.
"It remove one of the main problems in the market and helps the new buyer. It has been quite a decent success."
It was the head start they needed to sign a contract for a euro 135,000 (Bt7.11 million) three-bedroom house near Birmingham, the country's second-biggest city. Stuart, who works for the National Health Service, and his wife plan to move in before the end of January.
Easy credit is back in the UK, and this time the government and home-builders are making the loans. Seeking to recover from the worst recession in a generation, Britain is helping as many as 10,000 buyers obtain 100-per-crnt financing through a euro 300 million plan called Home-Buy Direct, at a time when mortgages are scarce and, according to professional services firm Ernst & Young, home prices will "stagnate" for at least two more years.
"It's a catastrophe waiting to happen," KBC Peel Hunt's home-building analyst Robin Hardy said of the plan. "If the only way a certain bit of the market can work is to lend deposits to those people who can't afford a house, it's being done for the industry and not for the first-time buyers."
More than 32.000 potential home-buyers have sought information about the loans, a sign that borrowers are not scared off by a home-price drop accompanied by rising foreclosures and defaults on high percentage loans that outstrip home values. There are currently no plans to expand the plan.
Britain's home-builders have also embraced Home-Buy Direct to revive sales. Barratt Developments, Persimmon, Miller Group and Redrow are offering a combined 7,000 homes through the plan, according to the companies.
"Generally, it has been very good for the industry," said Numis Securities' housebuilding analyst Chris Millington in London.
"It remove one of the main problems in the market and helps the new buyer. It has been quite a decent success."
Wednesday, October 7, 2009
HI-TECH HELPS HOME-BUILDER GROW DESPITE SLUMP
Home-building firm the Season Home Group expects to achieve revenue of Bt1.1 billion this year, following the first nine months in which it recorded sales worth Bt800 million.
The company also believes its sales will grow at least 10 per cent next year, to reach Bt1.2 billion.
Season Home, which builds houses for customers who already own their own land, believes its success has come from developing its construction process and setting up a system to support business growth.
General manager Supitcha Chaipipat said the home-builders' market had suffered from the effects of the global economic downturn, starting last year.
However, Season Home has continued to record sales growth because it formed a subsidiary, Compact Home, in 2007 to manage a specific market segment for homes priced lower than Bt2.5 million.
During the economic downturn, demand for residences slightly, but demand for houses priced lower than Bt2.5 million continued to grow, she said.
Season Home, which builds more expensive homes, recorded sales of Bt480 million in the first nine months of this year, down 17.2 per cent from its earlier estimate of earnings reaching Bt580 million. But the subsidiary, Compact Home, recorded sales of Bt320 million in the first nine months, 38.9-per-cent higher than the earlier estimate of sales worth Bt230 million.
The group's combined revenue from the first nine months is thus Bt800 million, or just 1.2 per cent short of Bt810 million.
Season Home Group now believes it will record sales averaging Bt100 million per month in the final quarter of the year, dirving the total figure to reach its target of Bt1.1 billion before the end of the year, Supitcha said.
She said her company believed its sales would grow nearly 10 per cent in 2010, to reach Bt1.2 billion. It is planning to release 30 newly designed models - 20 of them costing more than Bt3 million and the remaining 10 models, less than Bt2.5 million per unit.
The company has developed its construction system to meet high standards by using the latest construction technologies. For example, it uses cement-and paint-spraying devices, auto-levelling lasers and thermo-hygrometers for measuring temperature and relative humidity when building new homes.
Supitcha said that when the company used new technology in its construction process, the time taken to build a house was reduced and the finished residence had higher quality. By reducing the time for delivering new houses to customers, the company was able to maintain a net profit margin of about 10 per cent, she said.
The company has also spent Bt10 million to develop an enterprise resource planning system to help manage its business costs with the latest information technology. Among other things, the system will manage its logistics process, delivering construction raw materials to building sites. This will help the company to cut its logistics costs and manage construction time. It will start using the system next year.
At present, after signing a contract, the company takes about four months to build and deliver a house priced lower than Bt2.5 million to a customer. The time is about six months for residences priced above Bt2.5 million.
The company has developed its construction-management system in order to compete effectively with other home-builders in an environment of high competition.
When the company launches new residential models, other home-builders copy them as soon as they can, so Season Home has to manage its construction system and its quality standards as the strong point of its business, Supitcha said.
"Season Home has continued to record sales growth because it formed a subsidiary, Compact Home, in 2007 to manage a specific market segment for homes priced lower than Bt2.5 million."
The company also believes its sales will grow at least 10 per cent next year, to reach Bt1.2 billion.
Season Home, which builds houses for customers who already own their own land, believes its success has come from developing its construction process and setting up a system to support business growth.
General manager Supitcha Chaipipat said the home-builders' market had suffered from the effects of the global economic downturn, starting last year.
However, Season Home has continued to record sales growth because it formed a subsidiary, Compact Home, in 2007 to manage a specific market segment for homes priced lower than Bt2.5 million.
During the economic downturn, demand for residences slightly, but demand for houses priced lower than Bt2.5 million continued to grow, she said.
Season Home, which builds more expensive homes, recorded sales of Bt480 million in the first nine months of this year, down 17.2 per cent from its earlier estimate of earnings reaching Bt580 million. But the subsidiary, Compact Home, recorded sales of Bt320 million in the first nine months, 38.9-per-cent higher than the earlier estimate of sales worth Bt230 million.
The group's combined revenue from the first nine months is thus Bt800 million, or just 1.2 per cent short of Bt810 million.
Season Home Group now believes it will record sales averaging Bt100 million per month in the final quarter of the year, dirving the total figure to reach its target of Bt1.1 billion before the end of the year, Supitcha said.
She said her company believed its sales would grow nearly 10 per cent in 2010, to reach Bt1.2 billion. It is planning to release 30 newly designed models - 20 of them costing more than Bt3 million and the remaining 10 models, less than Bt2.5 million per unit.
The company has developed its construction system to meet high standards by using the latest construction technologies. For example, it uses cement-and paint-spraying devices, auto-levelling lasers and thermo-hygrometers for measuring temperature and relative humidity when building new homes.
Supitcha said that when the company used new technology in its construction process, the time taken to build a house was reduced and the finished residence had higher quality. By reducing the time for delivering new houses to customers, the company was able to maintain a net profit margin of about 10 per cent, she said.
The company has also spent Bt10 million to develop an enterprise resource planning system to help manage its business costs with the latest information technology. Among other things, the system will manage its logistics process, delivering construction raw materials to building sites. This will help the company to cut its logistics costs and manage construction time. It will start using the system next year.
At present, after signing a contract, the company takes about four months to build and deliver a house priced lower than Bt2.5 million to a customer. The time is about six months for residences priced above Bt2.5 million.
The company has developed its construction-management system in order to compete effectively with other home-builders in an environment of high competition.
When the company launches new residential models, other home-builders copy them as soon as they can, so Season Home has to manage its construction system and its quality standards as the strong point of its business, Supitcha said.
"Season Home has continued to record sales growth because it formed a subsidiary, Compact Home, in 2007 to manage a specific market segment for homes priced lower than Bt2.5 million."
Thursday, September 24, 2009
ENDURING SYMBOL OF ARCHITECTURE
The main feature of the mixed-use MahaNakhon projecty will be a 77-storey tower that will be one of the tallest structures in Bangkok's central business district (CBD).
It is the creation of internationally acclaimed architect Ole Scheeren, one of the principal architects in the Dutch firm Office for Metropolitan Architecture and widely recognised for his work on the pioneering CCTV Building in Beijing.
With its distinctive sculptural appearance, MahaNakhon will have a three-dimensional ribbon of architectural "pixels" circling the tower's full height, as if excavating portions of the elegant glass curtain wall to reveal the inner life of the building, said Pace Development CEO Sorapoj Techakraisri.
MahaNakhon's profile will generating a set of special features - projecting glass skyboxes with sweeping views and generous indorrr/outdoor spaces well suited to Bangkok's tropical climate. Residences without pixels will exjoy innovations never seen before: double-height living spaces and duplexes with full-height folding balcony windows that fold inwards to open up homes and allow living areas to become indoor/outdoor environments.
MahaNakhon's stacked surfaces, terraces and protrusions have been' conceived to convey the energy, intensity and inclusiveness of Thai society and celebrate Bangkok's emergence as a true global capital, fitting the Thai meaning of the name MahaNakhon (great metropolis).
The complex will stand in the CBD on more than 9 rai directly adjacent to Chong Nonsi Skytrain Station on Narathiwat Road, between Silom and Sathorn roads.
Its components will include MahaNakhon Square, a landscaped outdoor public plaza intended as a new public destination within the city; MahaNakhon Terraces, 10,000 square metres of lifestyle retail space with gardens and terraces on multiple levels for restaurants, cafes and a 24-hour marketplace; The Ritz-Carlton Residences, Bangkok, with 200 highly-customised single-level and duplex homes, managed by The Ritz-Carlton with five-star amenities for all residents and interior-designed by David Collins Studio; and The Bangkok Edition, a boutique hotel with 150 rooms that will be a collaboration between Marriott International and renowned hotelier Ian Schrager. The complex will be topped by a multilevel rooftop Sky Bar and Restaurant, 310 metres above the street.
Sorapoj said the project was the result of strongly held wish to do something for Thailand that would be both an enduring architectural symbol and proof of the company's commitment and confidence in Thailand's long term economic prosperity and cultural diversity.
Architect Ole Scheeren said MahaNakhon would not be an inert isolated skyscraper, but rather a building that would actively engage the city and connect to its urban fabric.
The three-dimensional pixels that spiral up the tower will offer differentiated indoor and outdoor spaces of an energetically public and exclusively private nature. The building will absorb Bangkok's intensely vibrant energy and simultaneously give it back to the city.
The project has passed an environment-impact assessment, and application has been made for a construction licence, so building can start around the end of this year, for completion in 2012, Sorapoj said.
It is the creation of internationally acclaimed architect Ole Scheeren, one of the principal architects in the Dutch firm Office for Metropolitan Architecture and widely recognised for his work on the pioneering CCTV Building in Beijing.
With its distinctive sculptural appearance, MahaNakhon will have a three-dimensional ribbon of architectural "pixels" circling the tower's full height, as if excavating portions of the elegant glass curtain wall to reveal the inner life of the building, said Pace Development CEO Sorapoj Techakraisri.
MahaNakhon's profile will generating a set of special features - projecting glass skyboxes with sweeping views and generous indorrr/outdoor spaces well suited to Bangkok's tropical climate. Residences without pixels will exjoy innovations never seen before: double-height living spaces and duplexes with full-height folding balcony windows that fold inwards to open up homes and allow living areas to become indoor/outdoor environments.
MahaNakhon's stacked surfaces, terraces and protrusions have been' conceived to convey the energy, intensity and inclusiveness of Thai society and celebrate Bangkok's emergence as a true global capital, fitting the Thai meaning of the name MahaNakhon (great metropolis).
The complex will stand in the CBD on more than 9 rai directly adjacent to Chong Nonsi Skytrain Station on Narathiwat Road, between Silom and Sathorn roads.
Its components will include MahaNakhon Square, a landscaped outdoor public plaza intended as a new public destination within the city; MahaNakhon Terraces, 10,000 square metres of lifestyle retail space with gardens and terraces on multiple levels for restaurants, cafes and a 24-hour marketplace; The Ritz-Carlton Residences, Bangkok, with 200 highly-customised single-level and duplex homes, managed by The Ritz-Carlton with five-star amenities for all residents and interior-designed by David Collins Studio; and The Bangkok Edition, a boutique hotel with 150 rooms that will be a collaboration between Marriott International and renowned hotelier Ian Schrager. The complex will be topped by a multilevel rooftop Sky Bar and Restaurant, 310 metres above the street.
Sorapoj said the project was the result of strongly held wish to do something for Thailand that would be both an enduring architectural symbol and proof of the company's commitment and confidence in Thailand's long term economic prosperity and cultural diversity.
Architect Ole Scheeren said MahaNakhon would not be an inert isolated skyscraper, but rather a building that would actively engage the city and connect to its urban fabric.
The three-dimensional pixels that spiral up the tower will offer differentiated indoor and outdoor spaces of an energetically public and exclusively private nature. The building will absorb Bangkok's intensely vibrant energy and simultaneously give it back to the city.
The project has passed an environment-impact assessment, and application has been made for a construction licence, so building can start around the end of this year, for completion in 2012, Sorapoj said.
Wednesday, September 23, 2009
RAIL-LINK LAUNCH NOT DELAYED BY PHEU THAI COMPLAINTS, SAYS SRT
The State Railway of Thailand (SRT) is insisting the launch of the airport-link service will not be delayed by the opposition Pheu Thai Party's complaints about the premier and the interior minister allowing conflicts of interest in the project.
Suphoth Sublom, an SRT board director, said yesterday the project had made a lot of progress and the civil construction work was complete. The SRT is expected to officially start testing the system on December 5, which will run for three months. The service will be officially launched in April.
On Monday, a Pheu Thai MP filed a complaint with the National Anti-Corruption Commission saying that Prime Minister Abhisit Vejjajiva and Interior Minister Chaovarat Chanweerakul had allowed conflicts of interest in the project because Chaovarat's family members held shares in a construction company.
Pheu Thai's Lamphun MP Sanguan Pongmanee and the party's spokesman Prompong Nopparit claimed that Chaovarat's wife and children held shares in Sino-Thai Engineering and Construction, which won the Bt408-million project contract for adding more trimmings to the rail link. The Cabinet had approved the budget on March 10.
Chaovarat, also leader of Bhum Jai Thai Party, argued he had already declared his assets and has had nothing to do with the company for a long time now.
Moreover, he said, since Sino-Thai was a public company, anybody could buy its shares and as his children were all adults, they could do what they wanted with their money.
On March 10, the Cabinet approved the Transport Ministry's request for an additional Bt115 million to hire a consultant to supervise the construction of elevated paths linking the Phya Thai Skytrain station and the Petchaburi subway station to the airport-rail link at Makkasan. This is part of the connection between airport-rail link and the SRT transportation system in the city.
It also approved Bt11 million and Bt87 million for the construction of the paths from Phya Thai station and Petchaburi subway station respectively.
The government will cover the cost of the construction, which should be completed in 15 months.
The Cabinet also approved the expenditure of Bt195 million for the services of an independent safety and system certification engineer for three years. The government will be responsible for this cost as well.
The Cabinet has acknowledged the relocation of public facilities near the airport-rail link, which would cost Bt140 million. The Metropolitan Water Works Authority and the Metropolitan Electricity Authority each will be responsible for relocation costs of Bt83 million and Bt57 million, respectively.
Suphoth Sublom, an SRT board director, said yesterday the project had made a lot of progress and the civil construction work was complete. The SRT is expected to officially start testing the system on December 5, which will run for three months. The service will be officially launched in April.
On Monday, a Pheu Thai MP filed a complaint with the National Anti-Corruption Commission saying that Prime Minister Abhisit Vejjajiva and Interior Minister Chaovarat Chanweerakul had allowed conflicts of interest in the project because Chaovarat's family members held shares in a construction company.
Pheu Thai's Lamphun MP Sanguan Pongmanee and the party's spokesman Prompong Nopparit claimed that Chaovarat's wife and children held shares in Sino-Thai Engineering and Construction, which won the Bt408-million project contract for adding more trimmings to the rail link. The Cabinet had approved the budget on March 10.
Chaovarat, also leader of Bhum Jai Thai Party, argued he had already declared his assets and has had nothing to do with the company for a long time now.
Moreover, he said, since Sino-Thai was a public company, anybody could buy its shares and as his children were all adults, they could do what they wanted with their money.
On March 10, the Cabinet approved the Transport Ministry's request for an additional Bt115 million to hire a consultant to supervise the construction of elevated paths linking the Phya Thai Skytrain station and the Petchaburi subway station to the airport-rail link at Makkasan. This is part of the connection between airport-rail link and the SRT transportation system in the city.
It also approved Bt11 million and Bt87 million for the construction of the paths from Phya Thai station and Petchaburi subway station respectively.
The government will cover the cost of the construction, which should be completed in 15 months.
The Cabinet also approved the expenditure of Bt195 million for the services of an independent safety and system certification engineer for three years. The government will be responsible for this cost as well.
The Cabinet has acknowledged the relocation of public facilities near the airport-rail link, which would cost Bt140 million. The Metropolitan Water Works Authority and the Metropolitan Electricity Authority each will be responsible for relocation costs of Bt83 million and Bt57 million, respectively.
Monday, September 14, 2009
Doosan Heavy buys Czech turbine firm
South Korea's Doosan Heavy said yesterday it had agreed to buy Czech turbine maker Skoda Power for 450 million ($654 million) to better compete with bigger rivals such as GE and French engineering group Alstom.
"Skoda Power and Babcock will help us actively target European and US markets... and better compete with global leaders such as GE, Siemens and Alstom,"Doosan Heavy Industries & Construction said in a statement.
Doosan Heavy estimated that the acquisition, which it wants to complete within two to three months, would add 5.3 trillion won ($4.33 billion) in sales in 2020.
The addition of the 150-year-old turbine maker, which sells products in over 60 countries, would also help it complement its power generation and engineering business as Doosan has resorted to foreign rivals such as GE to secure turbine technologies.
Doosan Group has grown in business portfolio and scale through acquisitions.Its flagship unit Doosan Infracore Co bought the world's top compact construction equipment firm, Bobcat, and two other units from US conglomerate Ingersoll-Rand for $4.9 billion in cash in 2007.
"Skoda Power and Babcock will help us actively target European and US markets... and better compete with global leaders such as GE, Siemens and Alstom,"Doosan Heavy Industries & Construction said in a statement.
Doosan Heavy estimated that the acquisition, which it wants to complete within two to three months, would add 5.3 trillion won ($4.33 billion) in sales in 2020.
The addition of the 150-year-old turbine maker, which sells products in over 60 countries, would also help it complement its power generation and engineering business as Doosan has resorted to foreign rivals such as GE to secure turbine technologies.
Doosan Group has grown in business portfolio and scale through acquisitions.Its flagship unit Doosan Infracore Co bought the world's top compact construction equipment firm, Bobcat, and two other units from US conglomerate Ingersoll-Rand for $4.9 billion in cash in 2007.
Saturday, September 12, 2009
Prince Charles' crusade draws the wrath of modern architects
Prince Charles, heir to the British throne, does not hide his hostilioty to modern architecture but his long-standing design crusade is now drawing accusations of abuse of power.
The prince's efforts to promte clasical designs over modern "carbunchles" have enraged many architects, particularly when he manages to block new projects - interventions that some condemn as anti-democratic.
The scale of the row was laid bare this week when the new head of the Royal Institute of British Architects, Ruth Reed, laid in to Charles' interference in planning decisions just one day into her new job.
"It is unfortunate if anybody uses their position in public life to exert undue influence on a democratic process such as planning," she told the BBC on Tuesday, the day after becoming RIBA's first female president.
"There appears to be evidence that he has written behind the scenes both about planning applications and also about the appointment of particular architects, which would be an abuse of his position, definitely."
Graham Smith, a spokesman for the anti-monarchy campaign group Republic, said the prince's interventions made his position as future king "untenable".
"He can't do the job-as heir of the throne he is obliged to remain neutral and out of politics," Smmith told AFP.
Criticism of Charles gathered steam this year when his objections to an ultra-modern project for a former military barracks in west London reportedly resulted in the plans being scrapped.
According to the British press, the prince wrote to the Qatar royal family, who are linked to the Gul state's property investment arm, Qatari Diar, to ask them to review plans by renowned British archietect Richard Rogers.
In June, Qatari Diar withdrew their planning application for the building.
Charles had described Rogers' projects as "unsympathetic and unsuitable", proposing an alternative design that used traditional brick and stone that used traditional brick and stone that were used in the surrounding buildings.
"Even if he is quite forward-thinking in terms of sustainability and environment...[Charles] is a bit more aggressive and a bit more lookingg back" when it comes to architecture, expained Dan Stewart, architecture correspondent for Building magazine.
The bad blood between Charles and Rogers goes back 25 years to a now infamous speech by the prince in which he atacked the architect's plans for an extension to the National Gallery in London as a "monstrous carbuncle".
But the their to the throne's anger is not confined to Rogers.
In 2005, he tried to block a project by the French architect Jean Nouvel, which he believed risked ruining the area around St Paul's cathedral in London.
Charles wanted something that should "allow St. Paul's to shine brightly" and suggested architect Quinlan Terry-who specialises in building grand houses in historical modes - take over, the project's then manager Mike Hussey said.
However, his objections were rejected and Nouvel's project for offices and shops at One New Change is under construcction.
The prince's latest intervention came in support of plans to add a loggia to Kensington Palace where he lived with his late wife, Princess Diana. It was rejected by planners last month.
While Charles' aides refuse to comment on the disputes, Hank Dittmar, chief executive of the Prince's Foundation for the Built Environment, an educational chairty, insisted the public shared his clasical tastes.
"At its core this is an argument about architects and developers wanting to have their way, not about democracy in planning," he wrote last month in response to the media speculation.
The bad blood between Charles and Rogers goes back 25 years when the prince attacked the architect's plans for an extension to the National Gallery as a "monstrous carcuncle".
The prince's efforts to promte clasical designs over modern "carbunchles" have enraged many architects, particularly when he manages to block new projects - interventions that some condemn as anti-democratic.
The scale of the row was laid bare this week when the new head of the Royal Institute of British Architects, Ruth Reed, laid in to Charles' interference in planning decisions just one day into her new job.
"It is unfortunate if anybody uses their position in public life to exert undue influence on a democratic process such as planning," she told the BBC on Tuesday, the day after becoming RIBA's first female president.
"There appears to be evidence that he has written behind the scenes both about planning applications and also about the appointment of particular architects, which would be an abuse of his position, definitely."
Graham Smith, a spokesman for the anti-monarchy campaign group Republic, said the prince's interventions made his position as future king "untenable".
"He can't do the job-as heir of the throne he is obliged to remain neutral and out of politics," Smmith told AFP.
Criticism of Charles gathered steam this year when his objections to an ultra-modern project for a former military barracks in west London reportedly resulted in the plans being scrapped.
According to the British press, the prince wrote to the Qatar royal family, who are linked to the Gul state's property investment arm, Qatari Diar, to ask them to review plans by renowned British archietect Richard Rogers.
In June, Qatari Diar withdrew their planning application for the building.
Charles had described Rogers' projects as "unsympathetic and unsuitable", proposing an alternative design that used traditional brick and stone that used traditional brick and stone that were used in the surrounding buildings.
"Even if he is quite forward-thinking in terms of sustainability and environment...[Charles] is a bit more aggressive and a bit more lookingg back" when it comes to architecture, expained Dan Stewart, architecture correspondent for Building magazine.
The bad blood between Charles and Rogers goes back 25 years to a now infamous speech by the prince in which he atacked the architect's plans for an extension to the National Gallery in London as a "monstrous carbuncle".
But the their to the throne's anger is not confined to Rogers.
In 2005, he tried to block a project by the French architect Jean Nouvel, which he believed risked ruining the area around St Paul's cathedral in London.
Charles wanted something that should "allow St. Paul's to shine brightly" and suggested architect Quinlan Terry-who specialises in building grand houses in historical modes - take over, the project's then manager Mike Hussey said.
However, his objections were rejected and Nouvel's project for offices and shops at One New Change is under construcction.
The prince's latest intervention came in support of plans to add a loggia to Kensington Palace where he lived with his late wife, Princess Diana. It was rejected by planners last month.
While Charles' aides refuse to comment on the disputes, Hank Dittmar, chief executive of the Prince's Foundation for the Built Environment, an educational chairty, insisted the public shared his clasical tastes.
"At its core this is an argument about architects and developers wanting to have their way, not about democracy in planning," he wrote last month in response to the media speculation.
The bad blood between Charles and Rogers goes back 25 years when the prince attacked the architect's plans for an extension to the National Gallery as a "monstrous carcuncle".
Thursday, September 10, 2009
MRTA TURNS TO GOVT FOR LOAN AFTER JICA DELAYS
The Mass Rapid Transit Authority of Thailand (MRTA) wants to opt for a domestic loan, instead of taking a loan from the Japan International Cooperation Agency (Jica), to fund the construction of the Purple Line's rolling-stock system.
This decision came after Jica informed the MRTA that it would only consider the funding of the rolling-stock system in next March instead of this month, MRTA deputy governor Chookiat Phothayanuwat said yesterday.
He said the MRTA was discussing the matter of the loan with the Finance Ministry's Public Debt Management Office.
The rolling-stock system, worth Bt3.6 billion, is the last of four civil contracts for the construction of the Purple Line that would have used a loan from Jica.
Chookiat said if a domestic loan for MRTA was approved, it expects to be able to open the bidding for the rolling-stock system early next year. The construction of the system should be completed in two years.
CKTC, a joint venture between Ch Karnchang and Tokyo Construction, won the first civil construction contract worth Bt14.29 billion.
Sino-Thai Engineering and Construction won the second contract worth Bt13.1 billion, while the Power Line Engineering-led consortium won the third contract worth Bt5.025 billion.
The entire project costs Bt59.8 billion, which includes Bt9.2 billion for land expropriation, Bt1.296 billion for project design consultancy and Bt13.243 billion for the signalling and train system.
Chookiat added that the MRTA was still waiting for Jica to approve the loan for the civil construction of the second and third contracts and believes the MRTA could officially award the deals to the bid winners within this month.
He said the MRTA was clearing the area for CKTC to begin its construction project.
The MRTA already submitted its investment plan on the train-signalling system, train carriages and operation to the National Economic and Social Development Board (NESDB) for consideration early this month.
The NESDB is expected to take 60 days to complete the consideration before forwarding the plans to the Transport Ministry and the Cabinet for approval. Once approved, the MRTA plans to seek a partner to jointly invest in the systems.
The MRTA will invest in the signalling system, train carriages and operation on a Public-Private Partnership basis.
This decision came after Jica informed the MRTA that it would only consider the funding of the rolling-stock system in next March instead of this month, MRTA deputy governor Chookiat Phothayanuwat said yesterday.
He said the MRTA was discussing the matter of the loan with the Finance Ministry's Public Debt Management Office.
The rolling-stock system, worth Bt3.6 billion, is the last of four civil contracts for the construction of the Purple Line that would have used a loan from Jica.
Chookiat said if a domestic loan for MRTA was approved, it expects to be able to open the bidding for the rolling-stock system early next year. The construction of the system should be completed in two years.
CKTC, a joint venture between Ch Karnchang and Tokyo Construction, won the first civil construction contract worth Bt14.29 billion.
Sino-Thai Engineering and Construction won the second contract worth Bt13.1 billion, while the Power Line Engineering-led consortium won the third contract worth Bt5.025 billion.
The entire project costs Bt59.8 billion, which includes Bt9.2 billion for land expropriation, Bt1.296 billion for project design consultancy and Bt13.243 billion for the signalling and train system.
Chookiat added that the MRTA was still waiting for Jica to approve the loan for the civil construction of the second and third contracts and believes the MRTA could officially award the deals to the bid winners within this month.
He said the MRTA was clearing the area for CKTC to begin its construction project.
The MRTA already submitted its investment plan on the train-signalling system, train carriages and operation to the National Economic and Social Development Board (NESDB) for consideration early this month.
The NESDB is expected to take 60 days to complete the consideration before forwarding the plans to the Transport Ministry and the Cabinet for approval. Once approved, the MRTA plans to seek a partner to jointly invest in the systems.
The MRTA will invest in the signalling system, train carriages and operation on a Public-Private Partnership basis.
Tuesday, September 8, 2009
CABINET NOD FOR LOANS FROM WB, ADB
The Cabinet yesterday approved borrowing a total of US$170.30 million (Bt5.62 billion) from the World Bank and the Asian Development Bank to finance the construction of four expressways.
Deputy government spokesman Phumin Leetheerapra said the $79.30-million loan from the World Bank would be for 15 years, including a five-year grace period, with an average interest rate of 0.91 per cent per annum. The $77.10-million loan from the ADB is for the same duration and the interest rate would be in line with the US floating rate.
Last week, the Cabinet had cancelled the loan. However, the finance minister insisted that loans from the two banks, for the construction of expressways, is the most appropriate means of financing the projects.
Parliamentary approval is necessary for the two loan deals, he said.
The Cabinet also approved some programmes to ease pollution in Map Ta Phut and Rayong. The Education Ministry is to consider the consolidation of universities in the province to provide occupational health, environment and other studies.
The ministries of public health and natural resources and environment are to present concrete measures to ease health problems, probably through a special medical unit. The Interior Ministry was also instructed to find ways to establish a special regulatory unit to improve the province's administration.
The Cabinet also approved a budget of Bt90 million for the Science Ministry's recycling project to turn dried longans in the government's stock to biomass energy.
Deputy government spokesman Phumin Leetheerapra said the $79.30-million loan from the World Bank would be for 15 years, including a five-year grace period, with an average interest rate of 0.91 per cent per annum. The $77.10-million loan from the ADB is for the same duration and the interest rate would be in line with the US floating rate.
Last week, the Cabinet had cancelled the loan. However, the finance minister insisted that loans from the two banks, for the construction of expressways, is the most appropriate means of financing the projects.
Parliamentary approval is necessary for the two loan deals, he said.
The Cabinet also approved some programmes to ease pollution in Map Ta Phut and Rayong. The Education Ministry is to consider the consolidation of universities in the province to provide occupational health, environment and other studies.
The ministries of public health and natural resources and environment are to present concrete measures to ease health problems, probably through a special medical unit. The Interior Ministry was also instructed to find ways to establish a special regulatory unit to improve the province's administration.
The Cabinet also approved a budget of Bt90 million for the Science Ministry's recycling project to turn dried longans in the government's stock to biomass energy.
Monday, September 7, 2009
FASHION ISLAND OPERATOR PLANS NEW SHOPPING MALL IN BANGKOK IN JOINT VENTURE
Siam Retail Development, operator of Fashion Island, is planning to develop a new shopping mall in Bangkok in a joint venture with a local business partner.
The company is in the process of studying concept and pattern of the new shopping complex together with its joint venture partner. Details will be announced by the end of this year.
Prasert Sriuranpong, executive director of Siam Retail Development, said the company has already invested Bt400 million in a major renovation of the 13-year old Fashion Island shopping complex on Ram Indra Road, which is almost 85 per cent complete.
The shopping mall will next year invest another Bt200 million to complete the renovation process. The new look dubbed "The Joy of Shopping" will upgrade entertainment and recreation facilities to cater to today's lifestyle. After the renovation, Fashion Island will come out in a minimal modern style.
"Nowadays, shopping plazas are mushrooming everywhere, from central Bangkok to the suburbs. To win loyal patronage, each plaza strives to raise the bar of excellence in terms of architectural design, shops, marketing strategy, sales promotions and supporting activities," said Prasert.
"Having been a comprehensive shopping mall for over 13 years, Fashion Island realises the importance of constant improvement and renovation to fit well with the needs of our target consumers in the Ram-Indra area," he said.
Prasert said that since Ram-Indra has now evolved into a residential area attracting new target groups such as teenagers, workers and families, the company feels it is time to renovate the shopping mall. This will cater to the changing consumer demand for service-oriented retail and entertainment attractions in addition to the traditional shopping experience.
Fashion Island's transformation includes a new logo, the use of a minimal modern theme for interior and exterior design to reflect a bright, trendy and spacious shopping mall, well-organised commercial zoning and the addition of lifestyle outlets such as restaurants, high street brands, shops, fashion, health and beauty, IT, and many more.
Prasert said Fashion Island had enjoyed higher traffic by 9 per cent in the first eight months of this year. The mall had attracted 16,000 vehicles on weekdays and up to between 20,000 and 23,000 vehicles on weekends. About 70 per cent of its shoppers visit the shopping mall in cars.
"About two to three million Bangkokians live in the urban areas of Bangkok. The majority lives in suburban areas such as Ram-Indra. But there is no difference in the shopping habits of people, irrespective of where they live. What we have to do is cater closely to the rapid change in their lifestyle," said Prasert.
The company is in the process of studying concept and pattern of the new shopping complex together with its joint venture partner. Details will be announced by the end of this year.
Prasert Sriuranpong, executive director of Siam Retail Development, said the company has already invested Bt400 million in a major renovation of the 13-year old Fashion Island shopping complex on Ram Indra Road, which is almost 85 per cent complete.
The shopping mall will next year invest another Bt200 million to complete the renovation process. The new look dubbed "The Joy of Shopping" will upgrade entertainment and recreation facilities to cater to today's lifestyle. After the renovation, Fashion Island will come out in a minimal modern style.
"Nowadays, shopping plazas are mushrooming everywhere, from central Bangkok to the suburbs. To win loyal patronage, each plaza strives to raise the bar of excellence in terms of architectural design, shops, marketing strategy, sales promotions and supporting activities," said Prasert.
"Having been a comprehensive shopping mall for over 13 years, Fashion Island realises the importance of constant improvement and renovation to fit well with the needs of our target consumers in the Ram-Indra area," he said.
Prasert said that since Ram-Indra has now evolved into a residential area attracting new target groups such as teenagers, workers and families, the company feels it is time to renovate the shopping mall. This will cater to the changing consumer demand for service-oriented retail and entertainment attractions in addition to the traditional shopping experience.
Fashion Island's transformation includes a new logo, the use of a minimal modern theme for interior and exterior design to reflect a bright, trendy and spacious shopping mall, well-organised commercial zoning and the addition of lifestyle outlets such as restaurants, high street brands, shops, fashion, health and beauty, IT, and many more.
Prasert said Fashion Island had enjoyed higher traffic by 9 per cent in the first eight months of this year. The mall had attracted 16,000 vehicles on weekdays and up to between 20,000 and 23,000 vehicles on weekends. About 70 per cent of its shoppers visit the shopping mall in cars.
"About two to three million Bangkokians live in the urban areas of Bangkok. The majority lives in suburban areas such as Ram-Indra. But there is no difference in the shopping habits of people, irrespective of where they live. What we have to do is cater closely to the rapid change in their lifestyle," said Prasert.
Sunday, September 6, 2009
GRADUAL RECOVERY EXPECTED
The Thai Contractors Association believes the industry will recover gradually over the next year, despite expectations that the country's economy will recover by the last quarter of this year, the association's president Polpat Karnasuta said at interview with The Nation last week.
The contracting business will have to wait till next year to reap the results of the government's injection of Bt800 billion through the "Thai Khemkhaeng" (Invest for Strength) project, Polpat said.
"Thai Khemkhaeng" will be in effect from fiscal 2009 through 2011.
The contracting industry will also have to wait for the government to open bidding on infrastructure worth Bt500 billion for Bangkok's mass-transit system, especially the rail system linking Bangkok's central business district and suburbs.
Polpat said that contractors will continue to face hardship through the last quarter of this year.
"In my view, if the government can spend according to its plan, the contracting business will recover in the next year. If not, our business will take time to recover," he said.
The Mass Rapid Transit Authority of Thailand (MRTA) has signed a contract to build the mass-transit Purple Line from Bang Sue to Toa Poon, worth Bt14.29 billion.
The Purple Line project is divided into four civil-work contracts. Sino-Thai Engineering and Construction, winner of the second contract, has agreed to reduce its bid price from Bt15.3 billion to Bt13.1 billion.
The Power Line Engineering-led consortium - winner of the third contract - has also lowered its price, from Bt6.3 billion to Bt5.025 billion.
The fourth contract, which has yet to be put out for bidding which and involves installation of the rail system, will cost Bt4 billion.
The entire project will cost Bt59.8 billion, which includes Bt9.2 billion for land expropriation, Bt1.296 billion for project design consultancy and Bt13.243 billion for the signalling and train systems.
State Railway of Thailand awarded the job to build the Taling Chan-Bang Sue section of the Red Line, worth Bt8.78 billion, to Unique Engineering and Construction and Chunwo Construction and Engineering last year.
Siam City Research Institute believes the number of construction projects will increase during the second half of this year, starting with the Purple and Red lines, worth Bt36.05 billion and Bt8.7 billion, respectively. It says a start on the infrastructure mega-projects should boost confidence among private investors.
The broker's top pick in the contractor sector is Ch Karnchang, for which it has a "buy" recommendation with a fair value of Bt4.50. It says the firm's earnings are expected to improve this year on the strength of its backlog, which is worth as much as Bt12 billion.
There is also the strong possibility of new small-power-producer projects worth Bt18 billion, a planned tunnel beneath Charan Sanitwong Rd, and the construction of the Purple Line. These will contribute to Ch Karnchang's 2009 earnings, which are expected to grow by 4 per cent year on year to Bt13.87 billion, as well as strengthening its earnings over the next three to five years.
Asia Plus Securities's head of research Therdsak Thaveeteeratham agreed that construction-material costs were no longer a concern for the sector, which absorbed high steel and oil costs last year. He also echoed Siam City Research's view that the number of new construction projects would increase in the second half of this year.
The sector is likely to record combined net profit of Bt1.17 billion this year, marking a turnaround from last year's loss of Bt1.44 billion, he said.
Therdsak's top picks for the sector are Sino-Thai Engineering and Construction and Syntec Construction.
Sino-Thai is a major contractor with expertise in the construction of power plants, petrochemical plants and waste-management systems. Its financial situation is strong, with cash reserves at the end of last year totalling Bt974 million - higher than its short-term borrowing of Bt769 million. Thus, Sino-Thai's debt-to-equity ratio is as low as 0.2 times, leaving the firm well prepared should any liquidity problems arise this year, Therdsak said.
Sino-Thai's backlog is worth Bt12.09 billion. This year, it is expected to post an operating profit of Bt285 million and pay its first dividend to shareholders. Asia Plus gives it a fair value of Bt3.83 per share.
The broker said Syntec's expertise was mainly in high-rise buildings, condominiums and hotels, which provided higher profitability than other types of construction projects. Most of its customers are listed firms, which carry a lower risk of exposure to bad debts. The company's financial status is strong, with cash reserves of Bt431 million.
This year, Syntec is expected to post an operating profit of Bt227 million, with revenue from its backlog last year totalling Bt6.2 billion. Asia Plus gives its stock a fair value of Bt0.57 per share.
The contracting business will have to wait till next year to reap the results of the government's injection of Bt800 billion through the "Thai Khemkhaeng" (Invest for Strength) project, Polpat said.
"Thai Khemkhaeng" will be in effect from fiscal 2009 through 2011.
The contracting industry will also have to wait for the government to open bidding on infrastructure worth Bt500 billion for Bangkok's mass-transit system, especially the rail system linking Bangkok's central business district and suburbs.
Polpat said that contractors will continue to face hardship through the last quarter of this year.
"In my view, if the government can spend according to its plan, the contracting business will recover in the next year. If not, our business will take time to recover," he said.
The Mass Rapid Transit Authority of Thailand (MRTA) has signed a contract to build the mass-transit Purple Line from Bang Sue to Toa Poon, worth Bt14.29 billion.
The Purple Line project is divided into four civil-work contracts. Sino-Thai Engineering and Construction, winner of the second contract, has agreed to reduce its bid price from Bt15.3 billion to Bt13.1 billion.
The Power Line Engineering-led consortium - winner of the third contract - has also lowered its price, from Bt6.3 billion to Bt5.025 billion.
The fourth contract, which has yet to be put out for bidding which and involves installation of the rail system, will cost Bt4 billion.
The entire project will cost Bt59.8 billion, which includes Bt9.2 billion for land expropriation, Bt1.296 billion for project design consultancy and Bt13.243 billion for the signalling and train systems.
State Railway of Thailand awarded the job to build the Taling Chan-Bang Sue section of the Red Line, worth Bt8.78 billion, to Unique Engineering and Construction and Chunwo Construction and Engineering last year.
Siam City Research Institute believes the number of construction projects will increase during the second half of this year, starting with the Purple and Red lines, worth Bt36.05 billion and Bt8.7 billion, respectively. It says a start on the infrastructure mega-projects should boost confidence among private investors.
The broker's top pick in the contractor sector is Ch Karnchang, for which it has a "buy" recommendation with a fair value of Bt4.50. It says the firm's earnings are expected to improve this year on the strength of its backlog, which is worth as much as Bt12 billion.
There is also the strong possibility of new small-power-producer projects worth Bt18 billion, a planned tunnel beneath Charan Sanitwong Rd, and the construction of the Purple Line. These will contribute to Ch Karnchang's 2009 earnings, which are expected to grow by 4 per cent year on year to Bt13.87 billion, as well as strengthening its earnings over the next three to five years.
Asia Plus Securities's head of research Therdsak Thaveeteeratham agreed that construction-material costs were no longer a concern for the sector, which absorbed high steel and oil costs last year. He also echoed Siam City Research's view that the number of new construction projects would increase in the second half of this year.
The sector is likely to record combined net profit of Bt1.17 billion this year, marking a turnaround from last year's loss of Bt1.44 billion, he said.
Therdsak's top picks for the sector are Sino-Thai Engineering and Construction and Syntec Construction.
Sino-Thai is a major contractor with expertise in the construction of power plants, petrochemical plants and waste-management systems. Its financial situation is strong, with cash reserves at the end of last year totalling Bt974 million - higher than its short-term borrowing of Bt769 million. Thus, Sino-Thai's debt-to-equity ratio is as low as 0.2 times, leaving the firm well prepared should any liquidity problems arise this year, Therdsak said.
Sino-Thai's backlog is worth Bt12.09 billion. This year, it is expected to post an operating profit of Bt285 million and pay its first dividend to shareholders. Asia Plus gives it a fair value of Bt3.83 per share.
The broker said Syntec's expertise was mainly in high-rise buildings, condominiums and hotels, which provided higher profitability than other types of construction projects. Most of its customers are listed firms, which carry a lower risk of exposure to bad debts. The company's financial status is strong, with cash reserves of Bt431 million.
This year, Syntec is expected to post an operating profit of Bt227 million, with revenue from its backlog last year totalling Bt6.2 billion. Asia Plus gives its stock a fair value of Bt0.57 per share.
Thursday, September 3, 2009
TWEAKING THE SQUEAKING
Fixing a squeaky floor is a little like playing a game of rock-paper-scissors.Finding the right remedy can be a guessing game which is why so many squeaks are left to linger.
There are several different causes of squeaks, said Tim Carter, a columnist and the founder of askthebuilder.com, a homeimprovement website. You have to try to locate the problem by trial and error and use the easiest fixes first.
One type of squeak is caused when the subfloor - the material beneath the flooring or carpeting - moves up and down. As you walk across the floor, your body weight pushes the subfloor down, Mr Carter said. The squeak comes from the subfloor moving on the nail.
Floors can also make a noise if the floorboards were not properly nailed and, as a result, rub against each other.
A third cause, Mr Carter said, is improper installation of the cross bracing - the oneby-threes positioned beneath the subfloor in an X-pattern between the joists to keep them from twisting. One brace in each X is supposed to be slightly higher than the other,leaving a small amount of space between the two braces. If the bracing was installed incorrectly, he said, the braces can rub against one another and make a squeak.
If the bottom of the subfloor is accessible,you can see if the cross braces are touching.The braces can then be sanded or chiselled,Mr Carter said.
A device called Squeak-Relief (US$18 or 614 baht at squeakyfloor.com) can help keep a subfloor from rubbing against a nail. Jim Riesberg, who owns the Accuset Tool Company of Troy, Michigan, which manufactures the device, said it was designed with do-ityourselfers in mind.
Squeak-Relief is an aluminium brace that holds the subfloor tightly to the joist by fitting into the 90-degree space formed by the subfloor and the joist on which it rests. A set pin is hammered into the joist through a pre-drilled hole in the brace. A screw is then drilled through another hole and into the subfloor at a 30-degree angle. Then a longer screw is drilled up through a third hole and the joist and into the subfloor.
Since the pin and the screws will only fit the holes they're supposed to go in, its idiotproof, Mr Riesberg said.
If the floor's underside is not accessible if there is no basement or the cross bracings are covered by the ceiling of the room below - the guessing game begins.
The easiest remedy is to shoot finish nails through the floor and into the subfloor - or,for an even stronger hold, to use screws with small heads.
Varouj Nersesian, the owner of the Floor Sanders Company in Boston, said that in either case, the nails or screws should be driven just below the floor surface and the holes concealed with a filler in a colour that matches the floor. The whole floor could then be sanded and refinished, but if you're not too fussy, you can just sand and refinish the holes, Mr Nersesian said.
For floors covered by wall-to-wall carpeting,a kit called Squeeeeek No More ($19.95 at squeaknomore.com) allows screws to be used without removing the carpet. The kit, sold by OBerry Enterprises, a tool company in Ringwood, Illinois, includes 50 thin screws,a drill bit and a screw with special threading to detect when contact is made with a joist (other joists can then be located because they are spaced 40cm apart).
The screws are drilled through the carpet,into the floor and down into the joist. Their heads are designed to be broken off with a tool that comes with the kit, leaving the threaded section of the screw in place below the floor surface. Because the screws are thin, the repair is usually invisible (or the carpet fibres can be fluffed to hide them).
If, after all this, a floor with an inaccessible underside is still squeaking, it probably means that the cross braces are touching. Tearing the floor apart to get to the source is, of course, an option. But Mr Carter offered different advice: get over it, he said. Live with the squeak.
There are several different causes of squeaks, said Tim Carter, a columnist and the founder of askthebuilder.com, a homeimprovement website. You have to try to locate the problem by trial and error and use the easiest fixes first.
One type of squeak is caused when the subfloor - the material beneath the flooring or carpeting - moves up and down. As you walk across the floor, your body weight pushes the subfloor down, Mr Carter said. The squeak comes from the subfloor moving on the nail.
Floors can also make a noise if the floorboards were not properly nailed and, as a result, rub against each other.
A third cause, Mr Carter said, is improper installation of the cross bracing - the oneby-threes positioned beneath the subfloor in an X-pattern between the joists to keep them from twisting. One brace in each X is supposed to be slightly higher than the other,leaving a small amount of space between the two braces. If the bracing was installed incorrectly, he said, the braces can rub against one another and make a squeak.
If the bottom of the subfloor is accessible,you can see if the cross braces are touching.The braces can then be sanded or chiselled,Mr Carter said.
A device called Squeak-Relief (US$18 or 614 baht at squeakyfloor.com) can help keep a subfloor from rubbing against a nail. Jim Riesberg, who owns the Accuset Tool Company of Troy, Michigan, which manufactures the device, said it was designed with do-ityourselfers in mind.
Squeak-Relief is an aluminium brace that holds the subfloor tightly to the joist by fitting into the 90-degree space formed by the subfloor and the joist on which it rests. A set pin is hammered into the joist through a pre-drilled hole in the brace. A screw is then drilled through another hole and into the subfloor at a 30-degree angle. Then a longer screw is drilled up through a third hole and the joist and into the subfloor.
Since the pin and the screws will only fit the holes they're supposed to go in, its idiotproof, Mr Riesberg said.
If the floor's underside is not accessible if there is no basement or the cross bracings are covered by the ceiling of the room below - the guessing game begins.
The easiest remedy is to shoot finish nails through the floor and into the subfloor - or,for an even stronger hold, to use screws with small heads.
Varouj Nersesian, the owner of the Floor Sanders Company in Boston, said that in either case, the nails or screws should be driven just below the floor surface and the holes concealed with a filler in a colour that matches the floor. The whole floor could then be sanded and refinished, but if you're not too fussy, you can just sand and refinish the holes, Mr Nersesian said.
For floors covered by wall-to-wall carpeting,a kit called Squeeeeek No More ($19.95 at squeaknomore.com) allows screws to be used without removing the carpet. The kit, sold by OBerry Enterprises, a tool company in Ringwood, Illinois, includes 50 thin screws,a drill bit and a screw with special threading to detect when contact is made with a joist (other joists can then be located because they are spaced 40cm apart).
The screws are drilled through the carpet,into the floor and down into the joist. Their heads are designed to be broken off with a tool that comes with the kit, leaving the threaded section of the screw in place below the floor surface. Because the screws are thin, the repair is usually invisible (or the carpet fibres can be fluffed to hide them).
If, after all this, a floor with an inaccessible underside is still squeaking, it probably means that the cross braces are touching. Tearing the floor apart to get to the source is, of course, an option. But Mr Carter offered different advice: get over it, he said. Live with the squeak.
Tuesday, September 1, 2009
"STRONG THAILAND" STIRS INDUSTRIES
Business leaders are excited about the "Strong Thailand" policy, but need convincing that the government can proceed with the investment projects as planned.
"Now, we're waiting to see if the projects will be materialised, as we need to draw up a raw-material import plan," Santi Charnkorawee, president of Tata Steel, said yesterday.
The Bt1.4 trillion stimulus package would create demand for 1 million tonnes of steel, he said.
The stimulus projects, for which the bidding process is expected to start this month, are a little too slow in coming, as the steel price has risen from Bt16,000 per tonne early this year to Bt19,000-Bt20,000 now, he said. The government should set up a special unit to oversee the awarding of contracts, to ensure it moves speedily, he added.
Vallop Rungkijvorasathien, president of Sino-Thai Engineering and Construction, said that all construction companies, which have suffered from the disappearance of state projects for some time, are ready to tender for the jobs.
"The package is a hope to all companies, but we're concerned with the procurement process," he said. Out of the total budget, construction firms are aiming at Bt700 billion from logistics, irrigation and energy projects, he added.
"Now, we're waiting to see if the projects will be materialised, as we need to draw up a raw-material import plan," Santi Charnkorawee, president of Tata Steel, said yesterday.
The Bt1.4 trillion stimulus package would create demand for 1 million tonnes of steel, he said.
The stimulus projects, for which the bidding process is expected to start this month, are a little too slow in coming, as the steel price has risen from Bt16,000 per tonne early this year to Bt19,000-Bt20,000 now, he said. The government should set up a special unit to oversee the awarding of contracts, to ensure it moves speedily, he added.
Vallop Rungkijvorasathien, president of Sino-Thai Engineering and Construction, said that all construction companies, which have suffered from the disappearance of state projects for some time, are ready to tender for the jobs.
"The package is a hope to all companies, but we're concerned with the procurement process," he said. Out of the total budget, construction firms are aiming at Bt700 billion from logistics, irrigation and energy projects, he added.
Monday, August 31, 2009
AN INCOMPARABLE PROPOSAL
Bookings at Sala Daeng Residences continue to record brisk sales as the project draws interest among local as well as overseas investors.
On a recent visit to meet with potential buyers in Singapore, Pace Development executive director Chotipol Techakraisri says demand for centrally-located properties in Bangkok remains robust.
"What surprised me a bit was the buyers were familiar with our location at Soi Sala Daeng," he says at Pace's headquarters at CRC Tower in All Seasons Place.
"Many overseas buyers are looking for a second home aboard, and Bangkok still ranks high on the list of destinations," he says.
"On pricing, our project which starts at about Bt160,000 a square metre, still appears reasonable when compared to what Singapore builders are charging."
"But the key lies in our ability to deliver high-end city homes that they can enjoy," he says. "They want something of high quality at affordable prices."
To be sure, Sala Daeng Reisidences, which was launched less than a year back, is poised to set new standards for luxury condominiums in the heart of the financial hub at Silom.
The project underlines the company's ability to provide compact, yet spacious and high-value homes in prime locations.
"Among Thai buyers, we are receiving many sophisticated professionals who understand the great advantage of living in the financial centre," Chotipol adds.
One of the worst aspects of living in Bangkok is the daily traffic gridlock and high pollution levels from buses and trucks.
Living at Sala Daeng allows buyers to commute with ease by walking or using mass transit lines at the BTS Skytain and MRT subway stations nearby.
Pace was formed to plan, launch, manage and market premium properties. Its projects include MahaNakhon and Ficus Lane.
Pace's main shareholders are the Techakraisri family, co-founders of LPN.
The management team with more than 25 years in real estate has a strong track record for success, Pace chief executive officer is Sorapoj Techakraisri says "the family is the major shareholder of all Pace's venture companies.
"The structure allow the company to be flexible in forging ties with right partners."
Sala Daeng Residences is a 28-storey tower with 5 basement parking levels.
It has just 132 freehold apartments offering one, two and three bedroom residences.
The smallest unit measures 60 square metres while its largest penthouse offers 393 square metres of built-up area.
Soi Sala Daeng is regarded as one of Bangkok's more prestigious addresses.
Residents can also enjoy the many facilities on the 16th floor that include an infinity-edge pool, gym, steam room, yoga room and landscaped gardens.
Its 25th floor offers even more common facilities as well as a panoramic view of the city.
Construction began last August and the project should be ready by 2011.
On a recent visit to meet with potential buyers in Singapore, Pace Development executive director Chotipol Techakraisri says demand for centrally-located properties in Bangkok remains robust.
"What surprised me a bit was the buyers were familiar with our location at Soi Sala Daeng," he says at Pace's headquarters at CRC Tower in All Seasons Place.
"Many overseas buyers are looking for a second home aboard, and Bangkok still ranks high on the list of destinations," he says.
"On pricing, our project which starts at about Bt160,000 a square metre, still appears reasonable when compared to what Singapore builders are charging."
"But the key lies in our ability to deliver high-end city homes that they can enjoy," he says. "They want something of high quality at affordable prices."
To be sure, Sala Daeng Reisidences, which was launched less than a year back, is poised to set new standards for luxury condominiums in the heart of the financial hub at Silom.
The project underlines the company's ability to provide compact, yet spacious and high-value homes in prime locations.
"Among Thai buyers, we are receiving many sophisticated professionals who understand the great advantage of living in the financial centre," Chotipol adds.
One of the worst aspects of living in Bangkok is the daily traffic gridlock and high pollution levels from buses and trucks.
Living at Sala Daeng allows buyers to commute with ease by walking or using mass transit lines at the BTS Skytain and MRT subway stations nearby.
Pace was formed to plan, launch, manage and market premium properties. Its projects include MahaNakhon and Ficus Lane.
Pace's main shareholders are the Techakraisri family, co-founders of LPN.
The management team with more than 25 years in real estate has a strong track record for success, Pace chief executive officer is Sorapoj Techakraisri says "the family is the major shareholder of all Pace's venture companies.
"The structure allow the company to be flexible in forging ties with right partners."
Sala Daeng Residences is a 28-storey tower with 5 basement parking levels.
It has just 132 freehold apartments offering one, two and three bedroom residences.
The smallest unit measures 60 square metres while its largest penthouse offers 393 square metres of built-up area.
Soi Sala Daeng is regarded as one of Bangkok's more prestigious addresses.
Residents can also enjoy the many facilities on the 16th floor that include an infinity-edge pool, gym, steam room, yoga room and landscaped gardens.
Its 25th floor offers even more common facilities as well as a panoramic view of the city.
Construction began last August and the project should be ready by 2011.
Friday, August 28, 2009
PLE clients slow to pay but overall outlook picking up
Power Line Engineering Plc (PLE), a SET-listed mechanical and electrical contractor, expects to weather current liquidity problems as it sees brighter prospects from government megaprojects.
The company also hopes to obtain more private-sector contracts as the economy improves, chairman Swake Srisuchart said yesterday.
Liquidity is tight because some struggling clients have delayed payments, but he said PLE still had good credit.PLE forecasts a decline in consolidated revenue of about 10% this year, to 7.9 billion baht from 9.11 billion last year.
"Every construction company is facing the same scenario where projects are either delayed or downsized. One problem is inability to receive payment from troubled customers," he said.
"Our gross profit should also drop this year as a result of price-cutting competition and the higher prices of construction materials we have in stock."
Consolidated revenue fell 7% in the second quarter to 3.86 billion as project owners delayed work, and on reduced contract values for the Baan Ua-Arthorn low-cost housing programme by the National Housing Authority (NHA).
The company's gross profit margin narrowed from 12.9% last year to 6.5% in the second quarter this year on higher raw material costs. It recorded a net loss of 654 million baht, compared to a profit of 138 million in the same period last year, as a result of provisions of 566 million baht for doubtful debts.
The company currently has total provisions of 1.04 billion baht and hopes to see at least 500 million baht worth of writebacks by the end of this year. "Some [debtors] have potential to pay within this year," Mr Swake said.
One of the debtors is Bo Bae Plaza, the wholesale clothing centre, with the 265-million-baht contract value set as a provision. PLE hopes to write back the sum as revenue soon as it has settled a dispute with vendors.
Also, PLE is negotiating with local and foreign institutional investors seeking to acquire stakes in the company. "The venture would give us a few million baht, but what we hope for is the institutions' connections to support us in wining future projects," said Mr Swake.
PLE currently has a backlog of 7.6 billion baht from 30 projects. They include the NHA and Tesco Lotus.
It is waiting for contracts to be signed on four projects worth 4.6 billion baht, including the Purple Line rail system and the Chiang Mai International Convention Centre.
PLE shares closed yesterday on the SET at 1.52 baht, unchanged, in trade worth 9.24 million baht.
The company also hopes to obtain more private-sector contracts as the economy improves, chairman Swake Srisuchart said yesterday.
Liquidity is tight because some struggling clients have delayed payments, but he said PLE still had good credit.PLE forecasts a decline in consolidated revenue of about 10% this year, to 7.9 billion baht from 9.11 billion last year.
"Every construction company is facing the same scenario where projects are either delayed or downsized. One problem is inability to receive payment from troubled customers," he said.
"Our gross profit should also drop this year as a result of price-cutting competition and the higher prices of construction materials we have in stock."
Consolidated revenue fell 7% in the second quarter to 3.86 billion as project owners delayed work, and on reduced contract values for the Baan Ua-Arthorn low-cost housing programme by the National Housing Authority (NHA).
The company's gross profit margin narrowed from 12.9% last year to 6.5% in the second quarter this year on higher raw material costs. It recorded a net loss of 654 million baht, compared to a profit of 138 million in the same period last year, as a result of provisions of 566 million baht for doubtful debts.
The company currently has total provisions of 1.04 billion baht and hopes to see at least 500 million baht worth of writebacks by the end of this year. "Some [debtors] have potential to pay within this year," Mr Swake said.
One of the debtors is Bo Bae Plaza, the wholesale clothing centre, with the 265-million-baht contract value set as a provision. PLE hopes to write back the sum as revenue soon as it has settled a dispute with vendors.
Also, PLE is negotiating with local and foreign institutional investors seeking to acquire stakes in the company. "The venture would give us a few million baht, but what we hope for is the institutions' connections to support us in wining future projects," said Mr Swake.
PLE currently has a backlog of 7.6 billion baht from 30 projects. They include the NHA and Tesco Lotus.
It is waiting for contracts to be signed on four projects worth 4.6 billion baht, including the Purple Line rail system and the Chiang Mai International Convention Centre.
PLE shares closed yesterday on the SET at 1.52 baht, unchanged, in trade worth 9.24 million baht.
Dept says Supreme Court building worth preserving
The Fine Arts Department has stepped in to the debate over the Supreme Court building, saying it is worth preserving and should not be demolished.
Grienggrai Sampatchalit, head of the department, raised concern about plans to demolish the structure to make way for a new Supreme Court building, which will rise 32m on the same site.
The building, though not registered as an historical structure, was still worth preserving for its historical and architectural values, he said.
The department's move is in response to a call by conservationists who have demanded the court review the project.
They believe the new building, if it goes ahead, will be an eyesore in the inner quarters of Rattanakosin old town.
Led by the Society for the Conservation of National Treasures and Environment,they have threatened to file a case with the Administrative Court to stall it.
Mr Grienggrai said a team of Fine Arts officials is preparing a building assessment report that will reach him soon.
"The court is obliged to submit the new building's blueprint to the department for consideration," he said, adding the department has the power to reject the construction plan.
Earlier this year, the Association of Siamese Architects listed the court building as an "ASA conservation structure",an award that is given to old buildings to encourage conservation.
The court, built by the Pibulsonggram government to commemorate the return of Thailand's judicial sovereignty in 1939,is cast in so-called modern architecture,an architectural style which was popular during the time of the now-defunct People's Party, which rose to power after Thailand switched from an absolute to a constitutional monarchy.
Mr Grienggrai said if the court really wanted to have the new building, it should downsize the structure to ensure that it is in harmony with the surroundings, in particular the Grand Palace and the Temple of the Emerald Buddha.
"It must follow the old architectural style and size. That is more agreeable,"he said.
The court argues the present structure is too old and cramped. However, a study by Chulalongkorn University suggests the building be renovated.
Restoring the building to its original grandeur would cost 1 billion baht, while the new building would cost 3.7 billion baht, it said.
Grienggrai Sampatchalit, head of the department, raised concern about plans to demolish the structure to make way for a new Supreme Court building, which will rise 32m on the same site.
The building, though not registered as an historical structure, was still worth preserving for its historical and architectural values, he said.
The department's move is in response to a call by conservationists who have demanded the court review the project.
They believe the new building, if it goes ahead, will be an eyesore in the inner quarters of Rattanakosin old town.
Led by the Society for the Conservation of National Treasures and Environment,they have threatened to file a case with the Administrative Court to stall it.
Mr Grienggrai said a team of Fine Arts officials is preparing a building assessment report that will reach him soon.
"The court is obliged to submit the new building's blueprint to the department for consideration," he said, adding the department has the power to reject the construction plan.
Earlier this year, the Association of Siamese Architects listed the court building as an "ASA conservation structure",an award that is given to old buildings to encourage conservation.
The court, built by the Pibulsonggram government to commemorate the return of Thailand's judicial sovereignty in 1939,is cast in so-called modern architecture,an architectural style which was popular during the time of the now-defunct People's Party, which rose to power after Thailand switched from an absolute to a constitutional monarchy.
Mr Grienggrai said if the court really wanted to have the new building, it should downsize the structure to ensure that it is in harmony with the surroundings, in particular the Grand Palace and the Temple of the Emerald Buddha.
"It must follow the old architectural style and size. That is more agreeable,"he said.
The court argues the present structure is too old and cramped. However, a study by Chulalongkorn University suggests the building be renovated.
Restoring the building to its original grandeur would cost 1 billion baht, while the new building would cost 3.7 billion baht, it said.
Thursday, August 27, 2009
STILL TOUGH TIMES FOR BIG FIRMS
Construction firms listed on the Stock Exchange of Thailand continue to report difficult business conditions extending into the second half despite some of them reporting year-on-year increases in their first-half net profit.
Italian-Thai Development achieved first-half revenue of Bt21.16 billion, down 3.42 per cent year on year. However, the company returned to the black, from a net loss of Bt439 million in last year's first half to a net profit of Bt46.53 million in this year's first half.
The company said the profit performance came from reasons other than its business operations. It gained a Bt503 million from buying back convertible bonds, Bt142 million on exchange rates, because of the baht's appreciation, and "other income" of Bt445 million, mostly from insurance claims and claims on some project owners. Finally, it received interest income of Bt126 million.
Ch Karnchang reported revenue growth of 46 per cent, from Bt6.69 billion in last year's first half to Bt9.77 billion in this year's first half. However, its net profit fell 10.98 per cent, from Bt346 million to Bt308 million.
By way of explanation, CEO Plew Trivisvavet said that in last year's second quarter, Ch Karnchang gained Bt278.6 million from the sale of investment in an associated company and Bt114 million from exchange rates. In this year's first half, the company lost Bt174 million from investments in associated companies, considerably more than the loss in the same period last year of Bt99.6 million from investment in associated companies.
Ch Karnchang's costs of finance have also increased because of bond issues raising Bt3.9 billion this year, Plew said.
Sino-Thai Engineering and Construction achieved first-half revenue of Bt6.13 billion, down 13.78 per cent year on year. However, the company's net profit was Bt92 million, up 41.53 per cent.
Director Woraphant Chontong told the SET that the profit increase was due to a substantial fall in the company's financial costs. These costs fell by Bt21.37 million in the second quarter and Bt35.92 million in the first half, year on year.
Thai Contractors Association president Polpat Karnasuta, who is also president of construction firm Nawarat Pattanakarn, earlier said contractors were continuing to face tough times, because of delays in starting the government's mega-projects.
Construction firm Thai Obayashi has also warned its revenue may drop 30 per cent to Bt6 billion this year, because the number of new projects is lower than last year, due to the economic downturn.
President Sompong Chintawongvanich said demand for construction from both the government and the private sector had fallen and would not recover until construction began on the government's mega-projects next year.
Italian-Thai Development achieved first-half revenue of Bt21.16 billion, down 3.42 per cent year on year. However, the company returned to the black, from a net loss of Bt439 million in last year's first half to a net profit of Bt46.53 million in this year's first half.
The company said the profit performance came from reasons other than its business operations. It gained a Bt503 million from buying back convertible bonds, Bt142 million on exchange rates, because of the baht's appreciation, and "other income" of Bt445 million, mostly from insurance claims and claims on some project owners. Finally, it received interest income of Bt126 million.
Ch Karnchang reported revenue growth of 46 per cent, from Bt6.69 billion in last year's first half to Bt9.77 billion in this year's first half. However, its net profit fell 10.98 per cent, from Bt346 million to Bt308 million.
By way of explanation, CEO Plew Trivisvavet said that in last year's second quarter, Ch Karnchang gained Bt278.6 million from the sale of investment in an associated company and Bt114 million from exchange rates. In this year's first half, the company lost Bt174 million from investments in associated companies, considerably more than the loss in the same period last year of Bt99.6 million from investment in associated companies.
Ch Karnchang's costs of finance have also increased because of bond issues raising Bt3.9 billion this year, Plew said.
Sino-Thai Engineering and Construction achieved first-half revenue of Bt6.13 billion, down 13.78 per cent year on year. However, the company's net profit was Bt92 million, up 41.53 per cent.
Director Woraphant Chontong told the SET that the profit increase was due to a substantial fall in the company's financial costs. These costs fell by Bt21.37 million in the second quarter and Bt35.92 million in the first half, year on year.
Thai Contractors Association president Polpat Karnasuta, who is also president of construction firm Nawarat Pattanakarn, earlier said contractors were continuing to face tough times, because of delays in starting the government's mega-projects.
Construction firm Thai Obayashi has also warned its revenue may drop 30 per cent to Bt6 billion this year, because the number of new projects is lower than last year, due to the economic downturn.
President Sompong Chintawongvanich said demand for construction from both the government and the private sector had fallen and would not recover until construction began on the government's mega-projects next year.
Wednesday, August 26, 2009
CKTC wins first purple line deal
The Mass Rapid Transit Authority of Thailand yesterday officially awarded the first contract for Purple Line mass-transit rail construction, worth Bt14.292 billion, to CKTC Joint Venture.
CKTC is a joint venture between Ch Karnchang and Tokyo Construction.
Ch Karnchang chief executive officer Plew Trivisvavet said the consortium was required to finish the project within 1,350 days of the MRTA allowing it to start work.
The company will ask its construction-material suppliers to fix their costs for two years, so that it is able to control the overall project cost.
Plew said Ch Karnchang expected a net profit margin of more than 5 per cent from the contract.
The Purple Line project is divided into four civil-work contracts. Sino-Thai Engineering and Construction, winner of the second contract, has agreed to reduce its bid price from Bt15.3 billion to Bt13.1 billion.
The Power Line Engineering-led consortium - winner of the third contract - also lowered its price, from Bt6.3 billion to Bt5.025 billion.
The fourth contract, which has yet to be put out to bid and involves installation of the rail system, will cost Bt4 billion.
The entire project costs Bt59.8 billion, which also includes Bt9.2 billion for land expropriation, Bt1.296 billion for project design consultancy and Bt13.243 billion for the signalling and train system.
CKTC is a joint venture between Ch Karnchang and Tokyo Construction.
Ch Karnchang chief executive officer Plew Trivisvavet said the consortium was required to finish the project within 1,350 days of the MRTA allowing it to start work.
The company will ask its construction-material suppliers to fix their costs for two years, so that it is able to control the overall project cost.
Plew said Ch Karnchang expected a net profit margin of more than 5 per cent from the contract.
The Purple Line project is divided into four civil-work contracts. Sino-Thai Engineering and Construction, winner of the second contract, has agreed to reduce its bid price from Bt15.3 billion to Bt13.1 billion.
The Power Line Engineering-led consortium - winner of the third contract - also lowered its price, from Bt6.3 billion to Bt5.025 billion.
The fourth contract, which has yet to be put out to bid and involves installation of the rail system, will cost Bt4 billion.
The entire project costs Bt59.8 billion, which also includes Bt9.2 billion for land expropriation, Bt1.296 billion for project design consultancy and Bt13.243 billion for the signalling and train system.
Monday, August 24, 2009
CHARNCHAI DEFERS DECREE ON POLLUTION
The Industry Ministry yesterday postponed to the beginning of next month its decree for controlling industrial plants with serious environmental impacts.
"I have not approved the ministerial decree because it still lacks necessary details such as the size of the plant," Industry Minister Charnchai Chairung-ruang said.
"I have assigned agencies to find out more information on environmental rules in Canada and other countries like Japan, South Korea and Hong Kong," he said.
Approval of the ministerial decree had been expected yesterday in order to clarify the eight industries that will be required to complete the new form of environmental impact assessment (EIA) and the new health impact assessment (HIA), as stated in Article 67 of the Constitution.
The eight types of projects listed in the ministerial decree are: underground mines; lead, zinc and manganese mines; upstream and mid-stream petrochemical plants; steel blast furnaces; industrial estates accommodating upstream-midstream petrochemical plants and steel blast furnaces; power plants; nuclear power plants; and hazardous waste-treatment facilities.
However, industries that have an impact on the environment but are not listed in the ministerial decree will not be forced to pass the HIA, but only the EIA.
"I have not approved the ministerial decree because it still lacks necessary details such as the size of the plant," Industry Minister Charnchai Chairung-ruang said.
"I have assigned agencies to find out more information on environmental rules in Canada and other countries like Japan, South Korea and Hong Kong," he said.
Approval of the ministerial decree had been expected yesterday in order to clarify the eight industries that will be required to complete the new form of environmental impact assessment (EIA) and the new health impact assessment (HIA), as stated in Article 67 of the Constitution.
The eight types of projects listed in the ministerial decree are: underground mines; lead, zinc and manganese mines; upstream and mid-stream petrochemical plants; steel blast furnaces; industrial estates accommodating upstream-midstream petrochemical plants and steel blast furnaces; power plants; nuclear power plants; and hazardous waste-treatment facilities.
However, industries that have an impact on the environment but are not listed in the ministerial decree will not be forced to pass the HIA, but only the EIA.
CHIA MENG TO TAKE RICE COST HIKES IN ITS STRIDE
Chia Meng Marketing, producer of Hong Thong rice, plans to maintain retail prices until year-end despite a surge in some operating costs, particularly global oil prices, which have affected transportation costs.
Managing director Sopan Manathanya yesterday said the company's transportation and packaging costs were all linked to oil prices.
Oil prices have increased more than 10 per cent since early this year. However, rice traders cannot adjust the retail prices of bagged rice, as they come under the price-control list of the Commerce Ministry.
"Rice is on the ministry's product watch list. If producers want to increase prices, they must seek ministry approval.
"Whether we adjust the retail prices of our rice will depend on the government's subsidy policy, as well. We'll consider the market situation before deciding," she said.
Meanwhile, the government's policy of opening bidding for a big lot of rice through the Agricultural Futures Exchange of Thailand for the first round early this month made an impact on the market's jasmine-rice price. Traders offered high prices to win the bidding amid the rice shortage. Therefore, Chia Meng had to purchase jasmine rice at prices higher than normal.
Chia Meng secured 100,000 tonnes of the total 300,000 tonnes of jasmine rice in the first round of bidding. The government will open a second round of bidding for jasmine rice tomorrow, and the company may join the bidding.
Sopan said Chia Meng Marketing planned to increase promotion campaigns and marketing events, for which it usually joins hands with department stores, in order to boost sales this year. It has not decided on discounting the retail prices of rice for promotion campaigns this year.
She said Chia Meng Marketing recently launched V-Life by Hong Thong, with three formulas: Gaba, Triple King and Pink Fragrant. V-Life by Hong Thong is targeted at health-conscious consumers.
"We're interested in developing rice for health-conscious consumers, because Thais have paid more attention to this variety of rice. The market value of this segment last year was Bt450 million, up more than 30 per cent from 2007, while that of jasmine rice increased at a lower rate of 10 per cent," she said.
The combined value of Thailand's bagged-rice market last year was Bt20 billion, of which Bt450 million was in the rice-for-health segment. Sopan predicts the market value of the new segment could reach Bt1 billion in three years. She added that Chia Meng Marketing now had an 11-per-cent share of the rice-for-health segment but expects to increase that to 20 per cent this year while doubling sales in the segment to Bt100 million after introducing V-Life by Hong Thong.
Managing director Sopan Manathanya yesterday said the company's transportation and packaging costs were all linked to oil prices.
Oil prices have increased more than 10 per cent since early this year. However, rice traders cannot adjust the retail prices of bagged rice, as they come under the price-control list of the Commerce Ministry.
"Rice is on the ministry's product watch list. If producers want to increase prices, they must seek ministry approval.
"Whether we adjust the retail prices of our rice will depend on the government's subsidy policy, as well. We'll consider the market situation before deciding," she said.
Meanwhile, the government's policy of opening bidding for a big lot of rice through the Agricultural Futures Exchange of Thailand for the first round early this month made an impact on the market's jasmine-rice price. Traders offered high prices to win the bidding amid the rice shortage. Therefore, Chia Meng had to purchase jasmine rice at prices higher than normal.
Chia Meng secured 100,000 tonnes of the total 300,000 tonnes of jasmine rice in the first round of bidding. The government will open a second round of bidding for jasmine rice tomorrow, and the company may join the bidding.
Sopan said Chia Meng Marketing planned to increase promotion campaigns and marketing events, for which it usually joins hands with department stores, in order to boost sales this year. It has not decided on discounting the retail prices of rice for promotion campaigns this year.
She said Chia Meng Marketing recently launched V-Life by Hong Thong, with three formulas: Gaba, Triple King and Pink Fragrant. V-Life by Hong Thong is targeted at health-conscious consumers.
"We're interested in developing rice for health-conscious consumers, because Thais have paid more attention to this variety of rice. The market value of this segment last year was Bt450 million, up more than 30 per cent from 2007, while that of jasmine rice increased at a lower rate of 10 per cent," she said.
The combined value of Thailand's bagged-rice market last year was Bt20 billion, of which Bt450 million was in the rice-for-health segment. Sopan predicts the market value of the new segment could reach Bt1 billion in three years. She added that Chia Meng Marketing now had an 11-per-cent share of the rice-for-health segment but expects to increase that to 20 per cent this year while doubling sales in the segment to Bt100 million after introducing V-Life by Hong Thong.
Thursday, August 20, 2009
SIMPLY MODERN TOWNHOUSES
Developer Sansiri's Piwattana subsidiary has launched its lates townhouse project, called Habitia at Ring Road-Ram-Indra.
The project has a market value of Bt450 million, with units starting at Bt1.79 million. There are 245 units, of which 30 have already been sold.
The style-desing theme for the project is "Simply Modern", with simplicity but added functions.
The two-storey units have floor space of 112 spuare metres, consisting of three bedrooms and two bathrooms. The 6-metre width of the units also allows parking space for two cars.
This project will have a grand opening on the second weekend of next month.
Piwattana's architect said the townhouse project was designed with concern for the lifestyle of homeowners and catered especially to younger-generation buyers seeking privacy and a quiet community. Hence, the "simply modern" approach to designing the townhouses to match customer demand.
The project will also have a clubhouse and gardens that will provide a green area for home-owners.
"'Simply Modern' looks easy, but it provides more functions in a home, to match a young lifestyle," he said.
The project has a market value of Bt450 million, with units starting at Bt1.79 million. There are 245 units, of which 30 have already been sold.
The style-desing theme for the project is "Simply Modern", with simplicity but added functions.
The two-storey units have floor space of 112 spuare metres, consisting of three bedrooms and two bathrooms. The 6-metre width of the units also allows parking space for two cars.
This project will have a grand opening on the second weekend of next month.
Piwattana's architect said the townhouse project was designed with concern for the lifestyle of homeowners and catered especially to younger-generation buyers seeking privacy and a quiet community. Hence, the "simply modern" approach to designing the townhouses to match customer demand.
The project will also have a clubhouse and gardens that will provide a green area for home-owners.
"'Simply Modern' looks easy, but it provides more functions in a home, to match a young lifestyle," he said.
State jobs buoy firms this year
Construction for both the public and private sectors this year is likely to shrink by between 4.5% and 8.1%, even with government investment helping to drive improvement, according to Kasikorn Research Center.
Government investment in the construction industry in the second half was estimated to have declined by a range of 0.2% to 6.7% year-on-year, improving from a contraction of between 3.4% and 8.2% in the first half, and resulting in a full-year contraction of between 1.6% and 7.4%.
Private investment is projected to drop by 7.0% to 8.1% in the second half compared to a range of 7.4% to 9.4% in the first half, leading to a full-year contraction of 7.2% to 8.7%.
The research centre said the economic stimulus package, Strong Thailand, would be an essential mechanism to revive activity in the construction industry. With a focus on small projects, the government can certainly implement those projects in the second half, it pointed out.
"Government construction will be the first sector to recover, followed by the commercial, residential and industrial sectors," the centre noted.
The government's "dustless road" project is to be implemented nationwide,which should be good for local contractors. There are irrigation projects and infrastructure investment, including the Purple Line mass-transit route between Bang Yai and Bang Sue that should be started by the end of this year.
Other positive factors in the second half from the centre's point of view include the recovery of the local economy,the measures to stimulate the real estate industry and rising construction material prices that may speed up the decision for investment.
The main negative factor to consider is government investment could be delayed if politics become unstable again,worsening the forecast.
Other hurdles that would hinder the revival of the industry include the uncertainty of an economic recovery, stricter loan approvals by financial institutions,the continuing panic surrounding H1N1 influenza, rising product prices and the inefficiency of budget reimbursement programmes.
Government investment in the construction industry in the second half was estimated to have declined by a range of 0.2% to 6.7% year-on-year, improving from a contraction of between 3.4% and 8.2% in the first half, and resulting in a full-year contraction of between 1.6% and 7.4%.
Private investment is projected to drop by 7.0% to 8.1% in the second half compared to a range of 7.4% to 9.4% in the first half, leading to a full-year contraction of 7.2% to 8.7%.
The research centre said the economic stimulus package, Strong Thailand, would be an essential mechanism to revive activity in the construction industry. With a focus on small projects, the government can certainly implement those projects in the second half, it pointed out.
"Government construction will be the first sector to recover, followed by the commercial, residential and industrial sectors," the centre noted.
The government's "dustless road" project is to be implemented nationwide,which should be good for local contractors. There are irrigation projects and infrastructure investment, including the Purple Line mass-transit route between Bang Yai and Bang Sue that should be started by the end of this year.
Other positive factors in the second half from the centre's point of view include the recovery of the local economy,the measures to stimulate the real estate industry and rising construction material prices that may speed up the decision for investment.
The main negative factor to consider is government investment could be delayed if politics become unstable again,worsening the forecast.
Other hurdles that would hinder the revival of the industry include the uncertainty of an economic recovery, stricter loan approvals by financial institutions,the continuing panic surrounding H1N1 influenza, rising product prices and the inefficiency of budget reimbursement programmes.
Wednesday, August 19, 2009
Blue Line bidding open to foreign firms
The Mass Rapid Transit Authority's board has agreed to open bidding for the Bt76-billion Blue Line urban electric-train project to foreign as well as local contractors.
"We opted for international bidding rather than an electronic auction as the project size is huge, and foregin contractors should be allowed to participate," Tawalyarat Onsira, an MRTA director, said after the board's meeting yesterday.
The meeting discussed both sections of the Blue Line, from Bang Sue to Tha Phra and from Hualamphong to Bang Khae.
The MRTA will now update the project cost, and the terms of reference should be ready for the board's consideration next month.
If the Comptroller-General's Office approves the international-bidding method, the bid documents should be available in October.
The Public Debt Management Office yesterday informed the MRTA's board that the Blue Line's constructin would be financed by domestic borrowing. This will shorten the bidding process to between three and six months, said Tawalyarat.
If the Finance Ministry sought financial support from the Japan International Cooperation Agency, the process could take eight to 12 months.
Tawalyarat said the bidding results should be known by next February. Bidders will be required to pass general qualification criteria, meet the technical construction requirements and quote competitive prices.
Of the current Blue Line project cost of Bt76 billion, Bt48.8 billion is for civil works and Bt25 billion for rolling stock.
Board member Chairat Chumwong will chair a committee to take care of land expropriation for the construction of the Blue and Purple lines. About 30 per cent of the land to locate the Purple Line is yet to be expropriated.
The board yesterday gave its stamp of approval to the qualifications of four companies - AEC, Thai MM, Systra snd PPS - bidding for the Purple Line's construction-project management contract, worth Bt1.3 billion.
"We opted for international bidding rather than an electronic auction as the project size is huge, and foregin contractors should be allowed to participate," Tawalyarat Onsira, an MRTA director, said after the board's meeting yesterday.
The meeting discussed both sections of the Blue Line, from Bang Sue to Tha Phra and from Hualamphong to Bang Khae.
The MRTA will now update the project cost, and the terms of reference should be ready for the board's consideration next month.
If the Comptroller-General's Office approves the international-bidding method, the bid documents should be available in October.
The Public Debt Management Office yesterday informed the MRTA's board that the Blue Line's constructin would be financed by domestic borrowing. This will shorten the bidding process to between three and six months, said Tawalyarat.
If the Finance Ministry sought financial support from the Japan International Cooperation Agency, the process could take eight to 12 months.
Tawalyarat said the bidding results should be known by next February. Bidders will be required to pass general qualification criteria, meet the technical construction requirements and quote competitive prices.
Of the current Blue Line project cost of Bt76 billion, Bt48.8 billion is for civil works and Bt25 billion for rolling stock.
Board member Chairat Chumwong will chair a committee to take care of land expropriation for the construction of the Blue and Purple lines. About 30 per cent of the land to locate the Purple Line is yet to be expropriated.
The board yesterday gave its stamp of approval to the qualifications of four companies - AEC, Thai MM, Systra snd PPS - bidding for the Purple Line's construction-project management contract, worth Bt1.3 billion.
Tuesday, August 18, 2009
ISRAEL HALTS NEW WEST BANK PROJECTS, OFFICIALS SAY
Israel has quietly stopped approving new building projects in the West Bank while publicly still refusing US demands for an official settlement freeze, government officials said yesterday.
President Barack Obama's administration has pushed Israel to shelve all settlement construction to allow peace talks to go forward, a demand Israel has said it cannot accept. The issue has grown into a rae public disagreemtn between the two allies.
However, several government officials said yesterday that Israel had decided to temporarily stop greenlighting new projects because of all the international pressure.
The move falls short of the US demand because it doesn't amount to a full freeze.
Still, it could be an indication Israel is seeking a compromise with Washington over the issue.
The decision to temporarily shelve new construction was made jointly by Prime Minister Benjamin Netanyahu, Defence Minister Ehud Barak and Housing Minister Ariel Atias, the officials said, speaking on condition of anonymity because no formal ruling has been announced.
Ron Nachman, the mayor of the settlement of Ariel, said the government was not allowing any new construction. He said that Netnyahu, elected on a hawkish platform with support from settlers, was now implementing dovish policies that are crippling Ariel and other settlements.
If the policies continue "the goverment's days will be numbered", Nachman said.
President Barack Obama's administration has pushed Israel to shelve all settlement construction to allow peace talks to go forward, a demand Israel has said it cannot accept. The issue has grown into a rae public disagreemtn between the two allies.
However, several government officials said yesterday that Israel had decided to temporarily stop greenlighting new projects because of all the international pressure.
The move falls short of the US demand because it doesn't amount to a full freeze.
Still, it could be an indication Israel is seeking a compromise with Washington over the issue.
The decision to temporarily shelve new construction was made jointly by Prime Minister Benjamin Netanyahu, Defence Minister Ehud Barak and Housing Minister Ariel Atias, the officials said, speaking on condition of anonymity because no formal ruling has been announced.
Ron Nachman, the mayor of the settlement of Ariel, said the government was not allowing any new construction. He said that Netnyahu, elected on a hawkish platform with support from settlers, was now implementing dovish policies that are crippling Ariel and other settlements.
If the policies continue "the goverment's days will be numbered", Nachman said.
Royal House expects homebuilding to dominate
The property market in downtown Bangkok over the next 10 years will be dominated by homebuilders while low-rise housing developers will be pushed to the outskirts, said Sakda Kovisuth, managing director of homebuilder Royal House Co Ltd.
Land costs in Bangkok's central areas rule out developing low-rise units in the heart of the city, he said.
During the first half of the year, most of Royal House's customers were in downtown Bangkok, with Ratchadaphisek Road being a leading location,he said.
"Many homeowners don't want to live far from where they work, due to traffic jams," he said."On Ratchadaphisek Road, they can live near mass transit and their houses only need a makeover."
While homeowners on Ratchadaphisek Road want to stay in the area to be near the MRT, homeowners on Sukhumvit Road want to sell their plots at attractive prices to condominium developers.
"But building a house in Bangkok downtown is not easy. Some plots are small and many roads and sois are very narrow," he said.
To tap rising demand, the company launched three-storey designs last year and got a good response, he said.
The homebuilding market in the second half of the year will improve from the first half as the world economy is in an upward trend, said Mr Sakda.
"Many stimulus packages will take effect in the second half," he said.
"I believe Thailand can overcome any potential deterioration in the political situation. We've done it before."
The company expects to achieve sales of 830 million baht in 2009, up from 730 million last year, due to improved market sentiment. In the first half of the year,the company passed its target with sales of 430 million baht.
Royal House plans to launch four highend housing designs with usable areas of 850-1,200 square metres and priced from 15 to more than 20 million baht at the Home Builder Fair from tomorrow at Queen Sirikit National Convention Centre.
"Some cash-rich customers told us they got a negative impact from the economic downturn so they had more free time to build a house. In a sluggish economy, they expected lower-priced materials and more bargaining power than homebuilders in cost negotiations,"said Mr Sakda.
Land costs in Bangkok's central areas rule out developing low-rise units in the heart of the city, he said.
During the first half of the year, most of Royal House's customers were in downtown Bangkok, with Ratchadaphisek Road being a leading location,he said.
"Many homeowners don't want to live far from where they work, due to traffic jams," he said."On Ratchadaphisek Road, they can live near mass transit and their houses only need a makeover."
While homeowners on Ratchadaphisek Road want to stay in the area to be near the MRT, homeowners on Sukhumvit Road want to sell their plots at attractive prices to condominium developers.
"But building a house in Bangkok downtown is not easy. Some plots are small and many roads and sois are very narrow," he said.
To tap rising demand, the company launched three-storey designs last year and got a good response, he said.
The homebuilding market in the second half of the year will improve from the first half as the world economy is in an upward trend, said Mr Sakda.
"Many stimulus packages will take effect in the second half," he said.
"I believe Thailand can overcome any potential deterioration in the political situation. We've done it before."
The company expects to achieve sales of 830 million baht in 2009, up from 730 million last year, due to improved market sentiment. In the first half of the year,the company passed its target with sales of 430 million baht.
Royal House plans to launch four highend housing designs with usable areas of 850-1,200 square metres and priced from 15 to more than 20 million baht at the Home Builder Fair from tomorrow at Queen Sirikit National Convention Centre.
"Some cash-rich customers told us they got a negative impact from the economic downturn so they had more free time to build a house. In a sluggish economy, they expected lower-priced materials and more bargaining power than homebuilders in cost negotiations,"said Mr Sakda.
SOCIAL NETWORKING FOR CORE INDUSTRIES
Software Park Thailand and its parent organisation, the National Science and Technology Development Agency, are working with the Industry Ministry to set up pilot projects using service-based technologies aimed at lifting the performance of Thailand's core industries, tourism agriculture.
Manoo Ordeedolchest, president of Software Park Thailand's board and a member of the NSTDA's board, said the park would fill the role of a technology supporter. Initially, it will help to produce human resources with service-based technology skills, but eventually it will develop a service-based platform called a Digital Connected Service, to work for the two flagship industries.
In part, the move is a bid to drive and promote the local software industry in the new era of a service-based economy. The park plans to be more proactive in promoting and building awareness of service-based technologies among local software businesses.
The key to service-based technology is service-oriented architecture (SOA). There are two main styles of Web services developed by SOA: simple object access protocol (Soap) and representational state transfer (Rest). The goal is to identify component-based software technology that will enable small-and medium-sized software companies to develop software in compenent form, rather than as completed applications or solutions.
One example of a Rest-based SOA is Amazon's affilate network - or, for that matter, any e-commerce affiliate network. Another example of a Rest-based SOA is Google's AdSense network. REST-based SOAs are bound to see much wider adoption throughout the web than Soap-based SOAs.
Manoo said the park planned to promote and build awareness of Rest-based SOAs among local software companies.
"Rest-based SOAs are lightweight SOAs that suit small- and medium-sized enterprises (SMEs). They can be designed and developed for easy, uncomplicated tasks. A viral effect is built around this kind of SOA.
"The park will join with universities in promoting this kind of technology through interdisciplinary curricula," he said.
Meanwhile, the park is also planning to launch a social website in the next two months to promote component-based software technology throughout the online community. The website will initially offer 40-50 component software prototypes designed according to REST-based SOA. By the end of this year, it plans to have about 200 component-software pieces available.
"This social website will be designed as a component-software marketplace for both users and developers. Users, especially SMEs, can visit to find the component software they need, by shopping or posting their requirements. Software houses will then have a great channel by which to reach the market - especially SMEs - and will have a chance to learn and work on SOA," Manoo said.
As well, Software Park Thailand will introduce its Digital Connected Service, which it hopes will apply the principles of current popular social networks to the real industryh sectors.
The park will work with partners to integrate the social network technology and Web 2.0 with "last mile" communication channels such as community radio, to deliver information and services to agricultural producers and tourism businesses in remote areas.
"This pilot will be a trial for integration and use of advance technology - Web 2.0 - and traditional communication - community radio channels. It will not only prove the concept of blending these technologies to help lift up the country's core real sectors, but also create new market opportunities for local software businesses," Manoo said.
Manoo Ordeedolchest, president of Software Park Thailand's board and a member of the NSTDA's board, said the park would fill the role of a technology supporter. Initially, it will help to produce human resources with service-based technology skills, but eventually it will develop a service-based platform called a Digital Connected Service, to work for the two flagship industries.
In part, the move is a bid to drive and promote the local software industry in the new era of a service-based economy. The park plans to be more proactive in promoting and building awareness of service-based technologies among local software businesses.
The key to service-based technology is service-oriented architecture (SOA). There are two main styles of Web services developed by SOA: simple object access protocol (Soap) and representational state transfer (Rest). The goal is to identify component-based software technology that will enable small-and medium-sized software companies to develop software in compenent form, rather than as completed applications or solutions.
One example of a Rest-based SOA is Amazon's affilate network - or, for that matter, any e-commerce affiliate network. Another example of a Rest-based SOA is Google's AdSense network. REST-based SOAs are bound to see much wider adoption throughout the web than Soap-based SOAs.
Manoo said the park planned to promote and build awareness of Rest-based SOAs among local software companies.
"Rest-based SOAs are lightweight SOAs that suit small- and medium-sized enterprises (SMEs). They can be designed and developed for easy, uncomplicated tasks. A viral effect is built around this kind of SOA.
"The park will join with universities in promoting this kind of technology through interdisciplinary curricula," he said.
Meanwhile, the park is also planning to launch a social website in the next two months to promote component-based software technology throughout the online community. The website will initially offer 40-50 component software prototypes designed according to REST-based SOA. By the end of this year, it plans to have about 200 component-software pieces available.
"This social website will be designed as a component-software marketplace for both users and developers. Users, especially SMEs, can visit to find the component software they need, by shopping or posting their requirements. Software houses will then have a great channel by which to reach the market - especially SMEs - and will have a chance to learn and work on SOA," Manoo said.
As well, Software Park Thailand will introduce its Digital Connected Service, which it hopes will apply the principles of current popular social networks to the real industryh sectors.
The park will work with partners to integrate the social network technology and Web 2.0 with "last mile" communication channels such as community radio, to deliver information and services to agricultural producers and tourism businesses in remote areas.
"This pilot will be a trial for integration and use of advance technology - Web 2.0 - and traditional communication - community radio channels. It will not only prove the concept of blending these technologies to help lift up the country's core real sectors, but also create new market opportunities for local software businesses," Manoo said.
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