Strategic acquisitions are often a play used when companies aim for exponential growth. That’s the case with Proud Real Estate’s recent acquisition of two projects from Noble Development.
The projects in question are the New District R9 and New Cross Khu Khot Station. The acquisition is a testament to Proud Real Estate’s confidence in the market as it expands its portfolio and solidifies its position in Thailand property market.
The deal is a strategic move that will enhance Proud Real Estate’s portfolio and, it hopes, significantly contribute to its revenue growth.
The company is striking a confident posture, arguing that the investment will lead to a leap in revenue growth to 10,000 million baht in 2023, up from the original target of 4,000 million baht.
The acquisition is also expected to help expand the company’s capital base, enhance its financial capabilities, and boost its potential, creating sustainable growth opportunities. The company aims to be among the top 10 leading real estate developers in the country within the next five years.
Proud Real Estate’s management believes that the company has reached a turnaround point in terms of revenue and profit.
The company is actively seeking opportunities to expand its business and diversify its portfolio in terms of location and customer base. It’s seen as a timely opportunity to extend the business under the strategic partnership between the two companies. The collaboration is expected to add value and be a win-win for both Noble and Proud in the future.
The company will continue to manage the projects in its original role, including the project name, construction, and project management after sales and construction warranty. This is to ensure that there is no impact on customers.
The sales process, investment, and share transfer in PA9 and KK, including some shareholder loans, will take place after each party has fulfilled the conditions precedent set out in the share purchase agreement. This is expected to occur by the end of July 2023, allowing the company to record extraordinary profits in the third quarter of 2023.
Currently, the company has a total of 13 joint projects with TNL Alliance, with a total value of 34,800 million baht. The acquisition of the two projects from Noble Development is a significant addition to this existing portfolio. The New District R9 and New Cross Khu Khot Station projects are expected to bring in substantial revenue, further strengthening Proud Real Estate’s financial standing and market position. The company’s strategic moves have been well received by the market.
Bottom Line
Proud Real Estate, under the leadership of Managing Director Mr. Pasu Liptapallop, has made a strategic investment totaling 8,623 million baht to acquire two new projects from Noble Development. This move aligns with the industry trend where major property developers are acquiring other condo projects for cost-effectiveness and time-saving in development. This acquisition is expected to significantly boost Proud Real Estate’s growth, increase revenue substantially, and contribute to the company’s long-term growth strategy. It underscores Proud Real Estate’s commitment to portfolio expansion, business diversification, and solidifying its market position.
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