Goldenland revealed that its sales for the first quarter of 2019 had beaten its target of Baht 9,000 million, and confirmed its full year 2019 plan to launch 28 low-rise development projects, worth Baht 33,000 million. It expects to be more cautious on its investments during the second half of the year to prepare for prevailing risk factors
Goldenland Property Development PLC, or Goldenland, released the results of its three-month operation, commencing from 1 January 2019 to 31 March 2019, reporting its total sales of over Baht 9,000 million and its total revenues of Baht 4,900 million, showing an increase of Baht 1,333 million or a 38% jump from the same period of the prior year. It also reported a net profit of over Baht 657 million, representing an increase of Baht 193 million or a significant rise of 42% from the same period of the prior year. These impressive achievements resulted from the success of its new launches from the end of 2018 to the beginning of 2019. The Company still cautiously retains the performance targets it earlier planned for the second half of this year. The caution follows the implementation of the new banking measures on the Loan-To- Value (LTV) ratio which is expected to impact the volume of residential ownership transfers during April – June of this year.
Mr. Thanapol Sirithanachai, President of Goldenland Property Development PLC, or Goldenland disclosed that “The Company still follows its business plan that targets 2019 as the year of “Harvesting Success”. It has already achieved its targeted operational results for its three-month operation (1 January 2019 - 31 March 2019). The annual revenue target for 2019 is set to grow by 14% from 2018, of which the goal for its total revenues will be Baht 19,800 million, comprising of Baht 18,000 million in incomes from sales of low-rise developments. For the year 2019, the Company plans to launch 4 projects of single detached houses under the “Neo Home” brand, 3 semi-detached house projects, 15 townhome projects, and 6 residential developments in selected provincial areas. Additionally, it forecasts that its revenues from commercial developments, namely the Park Ventures Ecoplex, Sathorn Square, the FYI Center, and the Samyan Mitrtown, will reach Baht 1,800 million. The income from the Samyan Mitrtown is expected to flow-in and be recognized as revenues upon the inauguration of its commercial operation in September 2019.
The overall business conditions of the office rental segment in which the Company engages, through its management of over 340,000 sq. meters in total, show a remarkable success with an average occupancy rate of over 95% for all the projects. The overview of the Grade A office buildings in the CBD areas displays a continued growth with an average occupancy rate of over 94% of the total rental areas with an average price per sq. meter of Baht 1,025, showing a 3% increase from the prior year. It is anticipated that the market for old office buildings will be impacted by the influx of new supplies of over 870,000 sq. meters which will gradually flow in from 2022 onward. The trend for office spaces will incline toward more flexibility, co-working space will become more and more key elements of the office supply due to the fact that it provides better solutions for many companies which do not intend to invest in high value construction and decoration costs but wish to be located in the areas with easy access to various transportations, namely Sky Train, MRT, and expressways.
As for the retail market, in 2020-2027, it will adjust from a single retail outlet toward mixed-use combinations which include a shopping complex, shops, office buildings, hotels, residential condominiums, exhibition halls, theatres, or even large size gardens. All elements within a mixed-use project should complement each other. At present, there are at least 9 retail mixed-use developments which have disclosed their development plans to the market. It is also expected that the mixed -use development trend will continue to rise in the future.
Mr. Thanapol Sirithanachai concluded that “During the second half of 2019, attention should be given to the real estate development market, with various risk factors such as the new banking measures on the Loan-To- Value (LTV) ratio which will cause difficulties to real estate sales. Additionally, the global economic slowdown which is induced by the trade war between United States of America and China, and the domestic political condition will also impact the real estate market. The market is expected to see new real estate stimulus policies from the new government which will soon be formed. All of these risk factors cause the Company to be prudent in its marketing and sales plan. Nevertheless, the Company remains confident in its strategies and is ready to launch 25 new projects during the last nine months of 2019 ( 1 April 2019-31 December 2019) , with a total value of Baht 29,000 million, comprising of 13 townhome projects, 3 “Neo Home” projects, 3 single detached house projects, and 6 provincial development projects.
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Goldenland Property Development PLC, or Goldenland, was founded in 1978 and officially became a publicly listed company in the Stock Exchange of Thailand on 29 March 1994 with the stock symbol of “GOLD”.
In 2012, the Company undertook a change in the major shareholders’ structure and Univentures Public Company Limited became its major shareholder. The Company thus had a new Board of Directors and a new management team who turned the Company around from its 7 year retained loss to profitability in 2014. In 2016, Frasers Property Holdings (Thailand) Company Limited, a subsidiary of Frasers Property Limited –a Singapore publicly listed company became the Company’s major shareholder and provides work collaboration that has enabled the Company to achieve its international standard of real estate developer.
At present the Company has a registered share capital of Baht 11,037,670,000 and total assets of Baht 43,959 million. It has developed residential developments in various locations under the “Golden” brand such as Golden Town, Golden City, Golden Neo, Golden Village, Golden Avenue, Golden Prestige, and the Grand. The prices of its residential development units range from under Baht 2 million to Baht 50 million. In addition, it has also developed several commercial high-rises which include office buildings, hotels, and serviced apartments in the heart of the Bangkok Central Business Districts such as Sathorn Square, the FYI Center, Samyan Mitrtown, Ascott Sathorn Bangkok, Goldenland Building, and W Bangkok Hotel.
www.goldenland.co.th
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Corporate Communications
Goldenland Property Development PLC; Phone 02-764-6200 Ext. 6241-6243
Kamolphan Chinnapongse (Nan) 062-645-4164 [email protected]
Naruenun Mahaarnuntaputt (Nut) 095-556-6624 [email protected]
Rungpet Chanphen (Rung) 094-561-4996 [email protected]
