TA Corporation to aggressively acquire more land bank in Thailand

Encouraged by brisk sales in maiden JV.

In a release, property developer TA Corporation Ltd (TA Corporation) announced that its maiden joint-venture (JV) development in Thailand, De Iyara, has been strongly received with all units fully sold within three weeks of launch.

As a result, through its 70%-owned subsidiary, Sireerin Signature Co., Ltd (Sireerin), the Group has incorporated a subsidiary, Reesirin Signature Co., Ltd (Reesirin), wholly-owned by Sireerin, to further pursue business opportunities in real estate investment and development in Thailand.

De Iyara, a freehold mixed-use development comprising 65 units of 3½ storey shophouses, is located in Pathum Thani province, which is part of the Bangkok metropolis and about 50km from Thailand’s capital.

The company noted that the development affords residents good accessibility to three major expressways, and is within walking distance of TalatThai, a huge central market where many farm produce, especially, fruits and vegetables from the Northern provinces, are sent to be re-distributed to other parts of Thailand and for export to other countries.

The development is also nearby Wat Phra Dhammakaya, Thailand’s largest temple, which reportedly can accommodate a few hundred thousand visitors at any one time, and is also within 5km of renowneduniversities such as Asian Institution of Technology and Thammasat University.

Launched in February 2013 to strong enthusiasm from local buyers, the units were transacted at an average selling price (ASP) of THB 4,170,000 per unit (equivalent to approximately S$180,000 per unit).

Mr Neo Tiam Boon, Chief Executive Officer and Executive Director of TA Corporation, said, “The strong demand for De Iyara underpins the good location of our maiden project and the success of our overseas expansion strategy and sets the groundwork for additional collaborative opportunities with our strategic Thai partners. Riding on the success of our first project, we have identified other quality land sites that sit in close proximity to De Iyara, which we believe will make valuable additions to our land bank.”

Reesirin with an initial issued and paid-up capital of THB30 million (equivalent to approximately S$1.32 million), will be used to acquire more land bank in Thailand. The Group intends to acquire well-located quality land parcels for the build-out of modern and innovative residences and commercial developments targeting the increasingly sophisticated middle to upper-middle class in Thailand.In line with the Group’s growth plans for the Thai real estate market, we have
acquired a 8,000 sqm freehold plot of land that sits adjacent to De Iyara. This project is currently undergoing planning.

“Backed by continued domestic demand for quality mixed developments and overwhelming response to our first project, we are optimistic of strong take-up rates and higher ASPs for our follow-on projects in Pathum Thani Province. Moving forward, we will continue to leverage on our core capabilities as a quality developer to explore growth opportunities in the Thai property development sector and opportunistically build up our land bank in choice locations,” concluded Mr Neo.

The incorporation of Reesirin is not expected to have any material impact on the consolidated earnings per share and net tangible assets per share of the Group for the current financial year ending 31 December 2013.