PF selects turnaround mode

PF selects turnaround mode

Moves respond to impact of pandemic

SET-listed Property Perfect Plc (PF) will sell plots of land and divest to generate earnings of 20.2 billion baht while diversifying into rubber glove production to deal with the impact from the pandemic crisis.

Chief executive Sanith Adhyanasakul said the company will focus on sustainable growth this year and shift to turnaround mode after being challenged by the pandemic.

“The property development business alone may be unable to help us reduce debts quickly,” he said. “Sale of land and some businesses which will be the largest divestment since our establishment can help. It will also build our financial stability.”

As of the end of 2020, PF had a debt to equity ratio at 2 times. It expects to reduce this to 1.2 times by the end of this year.

The land earmarked for sale comprises three large plots in the Chaeng Watthana, Ram Intra and Ramkhamhaeng areas, respectively, with a combined sale value of 10.2 billion baht.

It will sell an investment in two hotels held by Grande Asset Hotels & Property Plc — one of its subsidiaries — comprising Royal Orchid Sheraton and Hyatt Regency Sukhumvit worth a total of 8.5 billion baht into a real estate investment trust.

PF was also in talks with investors interested in buying land worth 1.5 billion baht on Ratchadaphisek Road, which is owned by We Retail Co, another of the firm’s subsidiaries.

Mr Sanith said Grande Asset diversified into rubber hand glove production as its core business — hotels — were experiencing a downturn.

It is investing 1.1 billion baht to build two plants in Chachoengsao, each with a production capacity of 21 million boxes per annum. The first will start production by June 2021 and the second early next year. It aims to have 3 billion baht in sales by the end of 2021 and 10 billion baht in 2022.

He said demand for rubber gloves rose 20% globally in 2020 and is expected to grow 25% this year, while existing production capacity is insufficient with a shortage of 150 billion pieces during 2020-22. PF expects to generate 21.37 billion baht in consolidated revenue by the end of 2021.

Due to a sluggish economy, PF will launch only six new projects worth 9.93 billion baht, all low-rise houses. Mr Sanith was formerly known as Chainid Adhyanasakul.

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