Noble Development Public Company Limited (NOBLE) marks its three decades in property business and outlines an investment plan in 2021 to develop 11 new projects worth THB 45.1 billion in total, the historic high since its inception.
This business direction emphasizes NOBLE’s management capability and support from major shareholders and strategic partners. The company is confident its local and overseas customers have high purchasing power and its next year revenue will exceed THB 11.0 billion and pre-sales THB 16.0 billion, paving the way for NOBLE to become a top-5 property developer in Thailand over the next 3 years (2021-2023).
Mr. Thongchai Busrapan, Chairman and Co-CEO of NOBLE, a leading property developer in prime locations of Bangkok Metropolitan Region, reveals that 2021 will be the year of growth and huge investment for NOBLE with strategic partners in the property business. Next year, the company plans to develop 11 new projects worth THB 45.1 billion, the highest in its 30-year presence since its establishment in 1991. It targets to generate THB 11.0 billion in revenue in 2021, a 10% rise from this year’s target at THB 10.0 billion, and THB 16.0 billion in pre-sale, jumping 146% from THB 6.5 billion this year.
For the plan in 2021, it will comprise five projects to be developed on its own, five projects on a joint venture with BTS Group Holdings Plc, and one project on a joint venture with Hongkong Land. Four condominium projects both high rise and low rise are planned to launch in the first half of next year, including NOBLE FORM THONGLOR worth THB 5.4 billion, NUE NOBLE CENTRE BANGNA worth THB 0.7 billion, THE EMBASSY AT WIRELESS worth THB 10.7 billion, and NUE CONDO AT DON MUEANG worth THB 1.9 billion. Then, the remaining seven projects comprising condominiums, semi-detached houses, and townhouses, will be gradually launched in the second half of next year, following its strategy to diversify the customer base locally and internationally to cover wider target groups.
Moreover, the Chairman and Co-CEO of Noble noted that “the company has signed a business agreement with U City Public Company Limited (U), an affiliate of BTS Group Holdings Public Company Limited (BTS) to jointly develop high-rise and low-rise condominiums, semi-detached houses, and townhouses on a 50:50 basis in several locations such as Suksawat, Rat Burana, Khu Khot, and Rama IX roads worth combined THB 23 billion.
The new projects are planned after the success of the first joint venture project worth THB 2.0 billion on Ratchada-Lat Phrao Road, which is sold by more than 50% now. The four new projects are close to the mass transit lines, namely Khu Khot Station (Green Line), Rat Burana and Pracha Uthit stations (Purple Line) and the MRT’s Rama IX Station.
Recently, NOBLE has formed a joint venture company with BTS and Saha Pathana Inter-Holding Public Company Limited (SPI) to acquire land around Project Thana City Bang Na in proportion of NOBLE 40%, SPI 41% and BTS 19% with the registered capital of THB 1,000 million. All in all, the company still continues to focus on development of residential projects along the mass transit lines.
2021 will mark an important move for “NOBLE” to build differentiation from the past, given its readiness after the shareholding restructuring of three major shareholders including Mr. Thongchai Busrapan, NCROWNE PTE LTD leading by Mr. Frank Fung Kuen Leung, and BTS, who hold together a 50% stake. This portraits the company’s potential and professionalism from experts in each industry associated directly and indirectly. So, it is a perfect alliance of partnership in business management to support business expansion to be top-5 property developers in Thailand over the next three years.
Besides, the company has plans to expand its NOBLE’s customer base, who have high purchasing power. Currently its total customers, 60% are local customers and 40% are overseas customers. Although the Covid-19 pandemic has clearly affected its customers with some delaying their purchases, NOBLE still got a 37% market share of the total share of condominiums in Bangkok during 9M’2020, Mr. Thongchai said.
With a strong financial positioning, in 2021 NOBLE has set a budget for capital expenditures for more than THB 9.0 billion to support the huge investment plan. In November 2020, the company sold debentures worth THB 1.25 billion to investors, which could attract an overwhelming subscription than its expectation, then it issued more from the Green Shoe Option.
Apart from this, the company plans to issue warrants to purchase ordinary shares of NOBLE for existing shareholders at a ratio of 4 existing ordinary shares to 1 unit of warrant to support business expansion in the next 3 years. At the end of third quarter 2020, the company had Net Interest-Bearing Debt-to-Equity at 1.28 times, giving the company flexibility in borrowing from financial institutions.
Moreover, Noble should be able to complete the par split process from 3 baht to 1 baht per share in early next year, which will help increase the trading liquidity for investors and it is a positive factor for NOBLE to be qualified in the calculation of SET100 Index as well.