A&J tightens focus on rental apartments

       Tough competition in imported cosmetics and fashion products has prompted A&J Land Co, owned by Araya Apisitamornkul, better known as Jae Leng, to invest more in developing apartments for rent.
       The owner of Jae Leng Plaza in Don Muang is constructing two apartment buildings on Chalong Krung Road near Suvarnabhumi Airport. The completion of 90 rooms early next year will increase the company's available apartments to almost 600, mostly near the new airport.
       A&J first invested in rental apartments 15 years ago with a 90-unit building in Don Muang that has always been fully occupied, said Ms Araya. The company has also had total occupancy with more than 400 apartments near Suvarnabhumi Airport, which have space to develop about 300 apartments or condominiums.
       She plans to rent out new furnished units at 4,500 to 8,000 baht a month and will showcase imported furniture from China to assist an expansion into the furniture import business.
       "There will be different pieces of furniture in all new rooms. I will order only one piece for each room. After opening the new buildings, we will sell mid-priced furniture imported from China as well,"said Ms Araya, who has invested only her own capital for the development.
       Managing rental apartments requires planning and computerised systems to do the paperwork, she said.
       "I don't have to check on m y apartments very often as the computerised system helps to ease my management. Renting apartments is a good business with regular income so the company can reach break-even in a few years,"she said.
       A&J Land is seeking permission to develop condominiums at its land plot near Suvarnabhumi Airport, where only four-storey buildings are permitted.
       Ms Araya plans to import construction materials from China to reduce costs.The development is likely to launch mid-2010 on a phased basis to meet demand from people working in the area.