Proud Real Estate, led by Managing Director Mr. Pasu Liptapallop, recently completed the acquisition of NUE District R9 from Noble Development and NUE Cross Khu Khot from TNL Alliance. The total amount of investments for both projects amounted to 8.6 billion baht. Keeping up with real estate trends, large developers are choosing shorter paths by purchasing other condominium projects in the hope of economic efficiency and saving time for further development.
Noble expects to close the deal in July this year, indicating the sale of the project in accordance with the strategy of creating cash flow.
While Mr. Tongchai Busrapan, Deputy Chairman and Co-CEO of Noble Development stated: "The reason why the company is making a purchase and sale transaction in the said project is the new operating strategy of the company, who want to create the highest return on equity and profit in both projects".
The New Cross Khu Khot Station project has already been sold out; pre-sales amounted to 100%. As for the New District R 9 project, sales currently exceed 83%, and the sales value of both projects is still considered a sale at a cost that brings good returns in terms of both the estimated profit and the current one. Including various fees that will be received as the administrator of the joint venture project.
Therefore, the sale of both projects during this period is the most appropriate time and the best solution. And can use cash for circulation to invest in new projects with higher returns. It also improves the company's capital structure. In addition, the project sale also adjusts the joint venture project portfolio to add new joint venture projects in the future. Currently, there are 9 joint venture projects with TNL Alliance totaling 28 billion baht.
The apartment market is recovering after the crisis and buying trends are high.
Experts express the opinion that in the first quarter of last year it was found that most developers continued to announce launch plans. Most of the new projects in 2023 have already begun to officially open pre-sale from the second quarter. Apartments in the area of new high-speed train lines leave the fastest.
Most developers are very careful about setting sales prices, although they have recently faced an increase in the cost of building materials by more than 20% due to new condominium projects. Most developers have turned to the implementation of projects other than residential real estate: such as medical centers, animal hospitals or animal kennels, etc.