V.M.P.C. Co Ltd, a privately held property developer, is ramping up its expansion, mainly in rental apartments, hotels and housing projects, with a goal to surpass 3 billion baht in sales within five years.
An artist’s conception of a house in the Astera Residence @ Phutthabucha project.
"We plan to grow mainly in two key business areas _ property rental and sales," said Prinya Tieanworn, the chief executive of the firm he founded 10 years ago after leaving Citibank.
V.M.P.C. began buying non-performing property assets from banks in 2003 and renovating them into rental apartments.
The company now has three apartment complexes, in the Ramkhamhaeng, Vibhavadi Rangsit and Sathon areas.
Understanding that apartment rentals are a slow-growth business, Mr Prinya made a bold decision in the last five years to expand into hotels, starting with the 130-room Astera Sathorn.
With registered capital of 100 million baht, V.M.P.C. later moved into housing development, launching its first single-house project _ the Astera Residence @ Phutthabucha _ on Rama II Road last September.
Prinya: Expects billions in sales
The 10-unit project was worth 150 million baht collectively and now has only three units left for sale. Pricing starts at 14 million baht per unit.
Mr Prinya said a second housing project, the Astera Pride @ Suksawat, is scheduled to launch by next year's first quarter.
The 2.2-billion-baht project on 12 rai of land, also on Rama II Road, has finished construction.
Unit prices start at 25 million baht.
A third, yet-to-be-named project on 28 rai and with a value of 4 billion baht is set for launch by late 2014, with construction to begin early in the year.
This project will have units for less than 10 million baht each to capture lower high-end buyers.
In addition, V.M.P.C. is buying three new plots of land _ two in Bangkok and one in Pattaya _ with more than 30 rai combined and worth 1 billion baht.
The Bangkok plots are for single-house and hotel development, while the Pattaya plot is for a hotel under the Astera brand.
"We remain on course for an aggressive expansion over the next five years, aimed at raising sales to at least 3 billion baht during the period from just hundreds of millions now," said Mr Prinya.
Brushing aside any thought of expanding into condominiums, he added: "Single houses are my passion. I love single houses and the way that type of community lives, so our focus over the next five years will be on this segment.
About the author
- Writer: Charoen Kittikanya
Position: Business Reporter