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Thailand Based Real Estate Developer Preuksa’s India Sales May Boost 2010 Revenue
Preuksa Real Estate Pcl, Thailand’s second-biggest developer, expects to add 1 billion rupees ($22 million) to revenue in 2010 from home sales in India, Thongma Vijitpongpun, the company’s president, said. “India presents a very big opportunity in the residential market,” Thongma said in an interview today in Mumbai. “We could get revenue of up to 3 billion rupees from India in the following year.”
Declining borrowing costs in the world’s second-fastest growing major economy are attracting home buyers in India, which has a shortage of 24.7 million housing units. Preuksa needs to expand its business beyond Thailand to reach its target of achieving annual sales of 100 billion baht ($3 billion) by 2017, according to Kasikorn Securities Pcl. Preuksa plans to begin pre-sales on its 1.1-billion baht housing project in Bangalore, in India’s south, by the end of this year. The property company also plans housing projects in New Delhi and the financial capital Mumbai. It has yet to find joint venture partners, Thongma said.
“Preuksa will need to invest only in the land and some working capital for construction,” Sorapong Jakteerungkul, a Bangkok-based analyst at Kasikorn Securities, wrote in a note to investors on Oct. 7. Among its Thai peers, “Preuksa will be one of the few residential developers that will be able to report earnings growth in 2010.” Sorapong rates the shares as “buy.” The Bangkok-based developer is raising its 2009 sales target to 18 billion baht from 17 billion baht as the economy begins to recover, Thongma said. Preuksa has sold 11,000 homes in Thailand this year, he said. Shares in Preuksa have surged more than threefold this year, compared with a 65 percent increase in Thailand’s benchmark SET Index. The stock rose 11.2 percent to 14.9 baht today.
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