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Thailand Industrial Estate – Hemaraj Slashes 2014 Sales Target

By on Jan 27, 2014 in Property News

Buyers delay spending over political worries

SET-listed Hemaraj Land and Development Plc, Thailand’s leading industrial estate and property developer, targets selling 1,600 rai of land this year, down from last year’s 2,200 rai, citing political impacts.

President and chief executive David Nardone said up to 20% of new cus-tomers have delayed investments since December as they adopted a wait-andsee stance.

“Certainly in the short term there are some constraints, but we are still signing contracts. It’s just a little slower to close transactions, as they are not familiar with Thailand and it takes a bit more time to ensure business is smooth,”he said.

Political disruptions normally last only a short period, Mr Nardone added.

As a result, Hemaraj is targeting singledigit revenue growth this year before accelerating in 2015. In the first nine months of last year, the company earned 6.79 billion baht.

In 2013, Hemaraj sold 2,200 rai of industrial land, falling short of its oftrevised target of 2,300 rai given the political conflict. This year, it aims for 70 contracts and 45 new customers.

Hemaraj’s key competitor Amata Corporation earlier cut its land sales target by one-third from 3,000 rai to 1,000,due to political strife.

This year Hemaraj set aside an investment budget of 6 billion baht, of which 40% each would be spent on land acquisition and industrial estate construction,with the rest for ready-built factories,warehouses and utilities.

The budget is part of its five-year investment plan of 40 billion baht that was announced in early 2012, of which 18 billion has been spent.

Hemaraj has combined land of 39,109 rai in seven industrial estates. The total investment generated by 615 customers amounted to US$26 billion, of which 215 customers are in the automotive sector and 38% are from Japan.

Hemaraj Chonburi Industrial Estate 2, its seventh industrial estate which covers 632 rai, will be available for sales in the fourth quarter of this year, while Hemaraj #8 Industrial Estate has 3,200 rai and is conducting an environmental impact assessment.

For the full articles, please visit http://bit.ly/1jA1b4q

Source | Bangkok Post 24 January 2014

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