Rebuilt Golden Land starting to shine
Golden Land Plc (GOLD) is a leading residential and commercial real estate developer. President Thanapol Sirithanachai discusses the company’s strategy and outlook.
GOLD has undergone a successful turnaround over the past few years. How this was achieved?
In the first year of the turnaround, 2013, we rebuilt the foundation of the company, refocusing only on residential and commercial projects and improving our workforce, management teams and project management. We also expanded our team from 80 to 480 people today.
In 2014 we were able to unlock the value that existed within GOLD. We acquired additional assets and the developer Krungthep Land (KLAND), all of which combined to increase our revenues from 1.6 billion baht to 4.4 billion with a profit of 350 million, while our asset base grew from 12 billion to 21 billion baht.
In 2015 we continued building on our new base and now have low-rise products in townhomes and single detached houses across virtually every segment, as well as three office buildings in Bangkok. As a result we were able to pay our first dividend in seven years to our shareholders and plan to continue doing so as our performance improves.
Your shareholder base is interesting with Frasers Property recently acquiring a stake. How does Frasers add value to GOLD?
We issued an additional 685 million shares to Frasers Property Holdings (Thailand), the local unit of Frasers Centrepoint, at 7.25 baht per share for a total of 4.97 billion baht, and it now holds 29.5% in GOLD. Frasers is a fully fledged real estate group with assets in 70 cities around the world and a proven track record in large-scale, mixed-use developments.
Frasers also has REIT platforms in retail, commercial and hospitality. Thus we hope to benefit from its decades of knowledge so that we can take GOLD to the next stage.