SET-listed developer Supalai Plc (SPALI) is upbeat about its international investment, planning to spend 500 million baht in Melbourne, Australia, this year after recording good sales in 2015 for its first three housing projects.
At home, it plans to launch 29-35 new projects worth a combined 36 billion baht, with a shift to focus more on low-rise development and provincial locations.
President and chairman Prateep Tangmatitham said Melbourne was expanding more quickly than Sydney, while housing demand was strong, driven by Chinese immigration.
"Despite an economic slowdown, Australia's currency is likely to be strong," he said.
"Property investment in Australia is also attractive thanks to clear laws and convenient international money transfers."
In the past two years, Supalai has committed to spending 878 million baht on residential development projects in Melbourne through a joint venture with a local developer and a foreign partner.
Of the total, 500 million baht was injected from 2014-15 to fund three projects in three locations including Balmoral Quay, where 13 out of 20 units in the first phase were sold for prices surpassing 30 million baht.
The other two projects will be Office Project on the city's western side near two railway stations and Arena Project in the northeast of the city.
After having average sales of 24 units worth A$18.8 million (469 million baht) per month at these three projects, Supalai and its partners will this year develop Fyansford Project in the south of Melbourne.
Mr Prateep said the company each year will invest abroad not more than 10% of its net assets.
Last year it spent 1.84 billion baht, equal to 4.32% of its assets.
Before Australia, Supalai invested in a 45-storey office building, Petron Megaplaza in Manila's Makati area, at a cost of 840 million baht.
"Our cost of funds is very low at only 3.48%, while the yield from the investment in the Philippines' office building is 9.1%," Mr Prateep said.
"International investment can increase our growth potential and diversify risks amid Thailand's volatile situations such as politics and floods in some years."
Supalai this year targets 24.5 billion baht in presales, up by 6.52% from last year, and 22 billion in revenue, up by 2.8%.
With higher-than-expected sales driven by the government's tax incentives, Supalai will launch more low-rise projects this year at 22-25 sites from a total of 29-35 projects.
SPALI shares closed yesterday on the SET at 18.20 baht, down 60 satang, in trade worth 158 million baht.