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Amata shifts business strategy to land leasing

By on Aug 21, 2012 in Property News

The SET-listed Amata Corporation is changing its business strategy to land leasing from land sales in order to stabilise revenue in the long term.  Managing director Viboon Kromadit said the new strategy will enable the company to earn additional revenue such as water management charges. 

He said the new strategy will kick off next year starting with the industrial asset of Amata Nakorn in Chon Buri province.

Amata Nakorn currently has 10,000 rai, 1,000 of which have been developed as industrial zones and residential areas. 

Mr Viboon said the company is looking to sign land-lease contracts for as long as 30-50 years.  He projects that over the long run, land-lease contracts will amount to 70% of revenue, with the rest from land and other sales.  Currently, land sales account for 70% of company revenue.

Mr Viboon said Amata Corporation is upbeat about selling 3,000 rai of land this year, which represents a doubling of last year’s figure.  The company has sold more than 2,000 rai, 40% of which belonged to Amata Nakorn, worth 6 billion baht, he said.  The remaining 60%, from Amata City in Rayong province, is worth 9 billion baht.

Japanese are still the main customers.  “The growth momentum from Japanese investors, particularly in the automotive sector is strong,” said Mr Viboon.

For the full article, please visit http://www.bangkokpost.com/business/economics/308588/amata-shifts-business-strategy-to-land-leasing

Source : Bangkok Post 21 August 2012

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