Noble Development Public Company Limited (SET: NOBLE) marks this new year, announcing its 2022 business plan with 18 new projects worth totaling THB 47,700 million, starting with the first 5 projects for the tiger year “3 condominiums close to department stores, 1 project in the middle of Ari area, and 1 project in the heart of Don Mueang area. The company’s strategy is to focus on several areas for wider coverage to residents around Bangkok. Its pre-sale target is set at THB 28,000 million with expected transfer target to be THB 13,000 million including joint venture projects. It is also expected to recognize revenue exceeding THB 10,000 million after having a backlog to support for THB 5,700 million.
Mr. Thongchai Busrapan, First Vice Chairman and Co-Chief Executive Officer of the leading residential property developer in Bangkok and its vicinity Noble Development Plc., said that the overall property market in 2022 is expected to recover from 2021 despite the new variant of Covid-19 “Omicron.” The company believes that this will not largely affect investors’ confidence as most people have been vaccinated. This comes as a positive factor to market sentiment amid Thai people’s easing concerns. Besides, the state agencies have relaxed their measures including extension reduction of transfer and mortgage fees to the end of 2022, permission of foreigners to hold Thai property for a longer period and Bank of Thailand’s relaxation on loan-to-value measures to stimulate the economy through the property market to the end of 2022. These are positive factors to drive the overall property market this year.
Based on such positive factors, NOBLE has drawn out its business strategy with focus on business expansion for robust growth in the future. This year, the company plans to develop 18 new projects worth a combined THB 47,700 million, comprising 12 housing projects and low-rise condominium projects with a total project value of THB 18,800 million and 6 high-rise condominium projects with a total project value of THB 28,900million. The company will continue to develop housing projects and low-rise condominium projects to diversify its products portfolio for wider coverage. These projects will help the company to have a faster revenue recognition as they require a shorter construction period. Noble plans to increase the proportion of low-rise projects to be 50%of portfolio (based on equity portion of NOBLE ) and plans to develop housing project in various locations for wider coverage in Bangkok’s area such as Ekkamai-Ramintra Road, Don Mueang area, Srinakarin Road, Krungthepkreetha Road, Ratburana Road, Suksawad Road, Ratchapruek Road, including inner city such as Ploenchit Road, etc.
Mr. Thongchai added that in the first quarter of 2022, NOBLE will simultaneously launch 5 projects worth THB 15,000 million. Given their location advantages, 3 condominiums will be close to department stores, 1 project in the middle of the Ari area, and 1 project in the heart of Don Mueang area. These projects have the following details.
1. Nue Noble District R9 total project value of THB 6,200 million. High-rise condominium under the concept “District to Meet Dynamic Life in the middle of Rama IX”, next to Central Department Store, Rama IX and only 180 meters away from the MRT station. It’s also close to the Interchange BTS Asoke Station and Airport Rail Link, Makkasan, with wide frontage design with starting price of THB 2.9 million.
2. Nue Noble Mega Plus Bangna total project value of THB 3,000 million. High-rise condominium under the concept “Everything You Need is Near…Only Steps Away Plus Live the Life of Your Dreams with more MEGA than any others at NUE Mega Plus Bangna”. The condominium project is only 0 meter from Mega Bangna Department Store. Its modern design fits urban people with a wide frontage design and the price starts from THB 1.89 million.
3. Nue Noble Z-Square Suan Luang Station total project value of THB 700 million. Condominium under the concept of Living Your Life Not Far from Downtown with the wider frontage low-rise condominium next to Seacon Square Department Store. Only three minutes to Suan Luang Rama 9 station of the MRT yellow line, connect to MRT blue line/ orange line/ green line, and Airport Rail Link. The price starts from THB 1.79 million.
4. Nue Noble Evo Ari total project value of THB 2,900 million. High-rise condominium under the concept of Evo, Live Your Life Closer to Ari than Any Others! The condominium with wide frontage design on one of the last land plots in the middle of the Ari area, only 300 meters away from the Ari BTS station. The price starts from THB 3.9 million or THB 130,000 per sqm.
5. Nue Noble Connex Condo Don Muang total project value of THB 2,200 million. High-rise and low-rise condominium in the heart of Don Mueang area. The modern designed condominium comes with wide frontage design and two ways of entry-exit via Phahonyothin Road and Vibhavadi-Rangsit Road, close to two BTS lines, taking only one minute to the tollway and five minutes to Donmueang International Airport. The price starts from THB 1.09 million.
For the rest of 13 projects comprising high-rise and low-rise condominium, semi-detached house, and townhouse will be gradually launched in the remaining of 2022. Moreover, there are also 14 projects will be completed and ready to move in this year, divided in to 1) 4 high-rise condominium projects, namely Noble State39, Nue Noble Srinakarin Lasalle, Noble Around Ari, and Nue Noble Ngamwongwan, will be gradually transferred in the second half of 2022. 2) 10 housing projects including low-rise condominium, namely Noble Gable Watcharapol, Nue Noble Connex House Donmuang, Nue Noble Centre Bangna, and new projects on Ekkamai-Ramintra Road, Ratchapruek Road, Suksawad Road, Chamnian Soem Road, Cha-Am District, will be gradually built and transferred from the beginning of this year.
With regards to the UK investment, NOBLE’s strategy in 2021 was to conduct a soft launch to validate the business model. We acquired over 40 city centre apartments units in city centre Manchester and Leeds, with a total acquisition cost of GBP 6.7 million. As of the end of 2021, we managed to sell more than 30% of the units with an average IRR of 35%. We believe that the business model combines strong recurring income along with attractive divestment margins.
In 2022, the company aims to acquire 550 pre-owned units in the Midlands and Northern England, with total capital of roughly GBP 100 million. Based on prevailing market conditions, the pre-owned properties are trading at a discount of roughly 30% to replacement cost. With a shorter investment horizon, we expect the ROE in the range of 20% – 25% which is in line with company’s policy.
Moreover, Mr. Thongchai Busrapan, First Vice Chairman and Co-Chief Executive Officer said that lately, NOBLE was in the process of adding a digital-currency payment method for customers. Customers may use cryptocurrencies to pay for residential projects. Initially, the process is expected to be completed and the payment will likely be made within the second quarter of 2022. This will be another payment method to facilitate both Thai and overseas customers, and in line with Chinese customers who are expected to return in the second half of 2022. This is to increase the payment channel through the digital-currency, especially for overseas customers, and reinforces the strength of NOBLE’s overseas market share 56%of the total share condominium in Bangkok during 9M’2021. With its strategy on investment expansion, NOBLE is still committed to become one among top-5 property developers in Thailand in the future.
