The new managing director of SET-listed developer Eastern Star Real Estate is planning to balance its residential development portfolio, launch three new projects annually in Bangkok and Rayong, and achieve annual growth of at least 10-15%.
Pairoj Wattanavarodom, who was appointed as managing director on May 1, said the company will increase the proportion of low-rise housing development from 20% to 50%, decreasing condo development from 80% to 50%.
"Low-rise houses can help bridge the revenue gap caused by the longer realisation period for existing condo projects," he said. "I will leverage my experience in low-rise development to enhance our portfolio and sustain revenue growth."
Mr Pairoj was formerly managing director of MAI-listed developer J.S.P. Property and the executive vice-president of SET-listed developer Quality Houses.
Starting from next year, Eastern Star plans to launch two new low-rise housing projects annually in Bangkok and one in Rayong. The company allocated a budget of 1 billion baht per year for the acquisition of new land plots for future projects.
Last week, the company's board of directors approved the purchase of a 16-rai plot in the Lat Krabang area to launch 156 two- to three-storey townhouses priced between 3-5 million baht per unit in the third quarter of 2024.
"We will not have any new projects on new sites launched this year, but we will continue with the existing three condo projects and launch a new phase of single detached houses in Rayong," Mr Pairoj said.
The three condo projects under the brand Quintara, worth a combined 4.15 billion baht, are located in the Ratchada-Huai Khwang area, Phrom Phong, and Pho Nimit. These projects are expected to be completed by the end of 2024.
Meanwhile, the new phase of single detached houses in Rayong is dubbed Velona 3, located on a 38-rai plot with 150 units priced between 5-9 million baht each, targeting workers at industrial estates, U-tapao airport and naval officers.
The company aims to achieve 3.1 billion baht in presales, up from 2 billion last year, and 1.5 billion in revenue.
Revenue might decline from 1.8 billion baht because of a gap in condo development, he said.
"My goal is to achieve 5 billion baht in revenue in the future, which we will gradually work towards," said Mr Pairoj. "We will maintain a debt-to-equity ratio of less than 0.5 times. The current ratio is 0.28 times."
The company owns plots in Bangkok and Rayong, including a three-rai plot on Soi Yen Akat, a seven-rai piece of land on Krungthep-Nonthaburi Road, and 288 rai in Ban Chang, Rayong.
The Yen Akat site, which was originally planned for a low-rise condo development, is now slated for 20 low-rise houses priced between 40-80 million baht.
The Krungthep-Nonthaburi plot is expected to be sold, he said.
