Sansiri lifts sales forecast

POST REPORTERS

The listed developer Sansiri Plc (SIRI) and its subsidiaries have revised up their sales target for this year to 26 billion baht from 20 billion baht. The revenue realisation goal has increased to 19 billion baht from 17 billion, according to Sansiri president Srettha Thavisin.

He said the revision reflected the improved economic situation and the brighter outlook for the property market. The company plans to launch 26 new projects worth 26 billion baht, up from 15 projects planned previously.

''The government's tax incentives related to the property sector including a reduction in transfer fees and additional reductions in revenue tax for housing loans will benefit the property business,'' Mr Srettha said.

The 26 new projects will include eight single-housing estates worth 7.6 billion baht, eight townhouse projects worth 7.1 billion baht and 10 condominiums worth 11 billion baht.

The projects would cover all categories and pricing segments as part of the company's goal of becoming the market leader. Sansiri will develop midmarket to premium segments for both single houses and condominiums.

At the same time, its subsidiary Plus Property will develop middle- to lower-priced condominiums and townhouses, and another subsidiary Phromphat, will develop duplex houses and single houses in the middle- to lower-priced segments.

''We remain focused on business expansion with strict financial discipline and are more cautious about taking out project loans. We will also manage costs effectively in order to increase the ability to realise higher revenue,'' said Mr Srettha.

The company has a pre-sales backlog of 22 billion baht to be realised within the next few years, which it claims is the highest in the industry. ''This is important for building our stability in the long run despite any change in economic factors in the future,'' he added.

SIRI shares closed yesterday on the Stock Exchange of Thailand at 3.80 baht, up 10 satang, in trade worth 22.3 million baht.

Bangkok Post April 10th 2008

Funny how they forgot to mention the big financial hit they'll take when they have to reduce the number of floors on 11 of their new Condo buildings already built! Never mind the lawsuits that the owners will launch if it's proved Plus failed to get building permits prior to construction. If true, that's pure negligence at best and criminal negligence or fraud at worst. The amounts awarded in damages could be large.