Supalai moves into BoI property sector

       Listed developer Supalai Plc plans to launch two projects this year worth a total of 2 billion baht to tap Board of Investment tax incentives.
       The BoI-supported sector is currently dominated by Preuksa Real Estate Plc,Thailand's second-largest property developer.
       Supalai has completed designs for projects eligible for BoI support and the land on Bangkok's outskirts is ready to be developed, said Tritecha Tangmatitham, manager for business development and investor relations, who did not specify the projects' launch dates.
       "Before we couldn't afford to enter the BoI market as the maximum price requirement is too low at 600,000 baht a unit," he said.
       Supalai's products, which mainly target the middle-end market, now fall within the BoI's maximum revised price cap of 1.2 million baht per unit.
       The revised BoI tax incentives require developers to must build at least 50 units - townhouses or detached houses with a minimum size of 70 square metres,up from 31 sq m, and a maximum price of 1.2 million baht, up from 600,000 baht. Apartments must be at least 28 sq m and priced no more than 1 million baht.
       Supalai expects homes built with BoI incentives to account for about 10% of its portfolio over the next few years.
       BoI-specification projects get a fiveyear corporate income tax holiday.
       Mr Tritecha said the company plans in the near future to increase the number of projects it launches annually to 15 from the current 12.
       "We're now in the land buying mode,which we will focus on smaller plots sized below 50 rai, down from the 100 rai that we usually bought," he said."Smaller land plots would help reduce our risk and increase our competitiveness in the market due to various locations."
       The company has 10 secured land banks worth a total of 9 billion baht, to be developed from next year. Six will be low-rise projects, four will be high-rise.
       Supalai reported an 89% increase in the first-half net profit to 1.228 billion baht, on total revenue of 4.66 billion baht, up 43% year-on-year.
       In the second quarter alone, it recorded net profit of 686 million baht, up 44% from the same period last year.Revenue rose by 16% to 2.56 billion baht year-on-year.
       Mr Tritecha said he is confident of the developer's continuous revenue growth as it has 13 billion baht in backlog to be realised by 2011.
       Supalai plans nine new projects worth 9.86 billion baht in the second half of this year from a total of 12 projects planned for 2009.
       Supalai shares (SPALI) closed yesterday on the Stock Exchange of Thailand at 4.76 baht, down six satang, in trade