Country Group Development plans to launch two or three residential projects per year

Posted June 9, 2010 by Real Estate Thailand in Thailand Real Estate News | Comments Off

MAI-listed Country Group Development Plc (CGD) plans to launch two or three residential projects per year with a projection to double its revenue next year.

Formerly Dragon One, the company was renamed after Ben Taechaubol, the incumbent managing director, stepped in to acquire 21% of the company’s shares and replaced Jrarat Pingclasai.

Since the Taechaubol group has 20 years of experience in property development, CGD will diversify from software to property development.

However, the main income for this year will come from subsidiary A-Host Co, its core IT business that generates constant revenue of around 300-400 million baht a year. As the holding company, CGD will look for investment opportunities in profitable projects.

CGD’s first property project is the Element Condominium located on 13-rai plot on Srinakarin Road opposite Seacon Square shopping centre. It comprises eight buildings housing 1,200 units priced from 1.7 million baht each.

The project will open sales in the next few months while construction will be completed within two years.

The company will start realising revenue next year with a net margin on investment of around 15-20%.

Mr Ben, who managed property developments in Australia for several years, is also interested in expanding the property business overseas such as China and Vietnam.

“I dream of building CGD to match the glory of Country Group, which had collapsed during the 1997 financial crisis,” said Mr Ben.

To succeed, CGD is determined to create products that fit customers’ needs and pay attention to details. It also plans to wipe out its retained losses of around 400 million baht soon, he added.

CGD reported losses of 8.61 million baht in the first quarter this year and 224 million baht in 2009.

The Taechaubol family now has a private investment in a mixed-use project on a 36-rai plot on Charoen Krung Road. Comprising residential units and a five-star-plus hotel, the 14-billion-baht project will be finished in 2014.

CGD shares closed yesterday at 0.41 baht, unchanged, in trade worth 1.93 million baht.