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INFORMATION MEMORANDUM NOBLE DEVELOPMENT PUBLIC COMPANY LIMITED Head Quarter : 226 Moo 12 Sukapiban 6 (Rattanapisan) Thambon Bangpreeyai Amphur Bangpreeyai Samutprakan Province Telephone 391-3161 Fax 391-0069 ----------------------------------------------------------------------------- Type and Nature The core business of Noble Development Public Company of Business Limited and its subsidiaries are not only residential property development for sale ranging from single detached houses to both low-rise and high-rise condominiums but also housing construction and project management. As of March 31, 1997, operating income of the company and its subsidiaries is Baht 251 million which can be divided into the ratio of income from property development for sale : income from housing construction : income from project management and services as 99 : 0 : 1 respectively Construction and Land procurement With the determination to be the most reliable firm at the very beginning, the company guarantees its customers with the highest quality product and on time delivery by hiring the number of reliable contractors and construction advisors to construct and supervise throughout the construction process. For the construction material procurement, the company only purchases the material that it has high bargaining power such as sanitary ware, door and metal sheet, other materials will be purchased by its contractors. For land acquisition, the company chooses the location diversity strategy (diversifies its projects into locations that it had never developed one) and specifies that it should not take more than one and a half hour in transportation from CBD to each site. These locations include Thonburi-paktor Rd., Rattanathibeth Rd., Pracha-uthit Rd., Srinakarin Rd., Ramindra Rd., Bangna-trad Rd. and Theparak Rd.. Moreover, the size of land plot will be around 50-100 raiper project in Bangkok and the vicinity area and 1-2 rai per project in CBD area. Marketing Currently, all nine projects of the company and its subsidiaries have been successfully launched. These projects focus on customer with middle and upper income level. As the companys mission to be a leader in both product and service innovation, the company implements the strategies that support creativity by using new - 2 - construction technology Steel Tech and unique design. Pricing strategy of the company is marked up strategy which is settled around 15% for single house and at least 15% for condominium. Current Projects As of 31 March, 1997, Projects being developed by Noble Development Public Company Limited and its subsidiaries are listed as follow: Project/ Type of Project Project Contruction Progress as of March 31, 1997 area project/ Value Cost Period/ Construction Sale Transfer Realized (rai) Units (Mil.Bt) (Mil.Bt) Lau-nched (Mil.Bt)/% (Mil.Bt)/ (Mil.Bt)/ income date % of % of (Mil.Bt)/ Project sales % of sale Value 1.Noble - Condo 2,168 1,665 1992-1994/ 1,665/100% 1)1,512/98% 1)1,154/76% 2,091/98% Park House/ Dec.1991 2)226/100% 2)213/94% (Bangna)/ 1,080 3)203/100% 3)186/92% 160-0-75 - Single 4)186/98% 4)71/38% House/173 2.Noble - Arched- 728 470 1993-1994/ 470/100% 728/100% 588/81% 708/97% Home roof single Aug.1992 (Bangna)/ house/269 55-1-84 3.Noble - Expandable 704 623 1994-1997/ 592/93% 1) 397/83% 1) 193/49% 533/89% Neo-city house/44 May 1993 2) 43/100% 2) 20/47% (Phase 1) - Groundominium 3) 28/100% 3) 9/33% (Vipa- /222 4) 124/82% 4) - wadee) /29-3-24 4.The - Single 357 255 1994-1997/ 253/98% 357/100% 169/47% 355/99% Noble house/ Jul.1993 (Ekamai) 22 /6-3-26 5.Noble - Condo- 900 800 1995-1998/ 245/6% 77/9% - - House minium/ Oct.1994 Lumpini/ 236 4-1-23 6.Noble - Condo- 216 163 1995-1997/ 123/62% 100/46% - 42/42% House minium/ Feb.1995 Ruamru- 24 dee/ 0-2-34 - 3 - Project/ Type of Project Project Contruction Progress as of March 31, 1997 area project/ Value Cost Period/ Construction Sale Transfer Realized (rai) Units (Mil.Bt) (Mil.Bt) Lau-nched (Mil.Bt)/% (Mil.Bt)/ (Mil.Bt)/ income date % of % of (Mil.Bt)/ Project sales % of sale Value 7.Noble - Condo- 1,004 627 1994-1997/ 576/83% 694/69% - 515/74% House minium/ Apr.1994 Phaya- 300 thai/ 2-0-43 8.Noble - Single 688 543 1996-1998/ 210/95%** 252/37% - 69/27% Choice house/ Apr.1996 Pinklao/ 136 38-2-8 9.Noble - Single 2,009 1,668 1996-1998/ 252/82%** 434/65%* - 123/28% Choice house/ Apr.1996 Vipawa- 380 deerangsit /112-2-62 10.Noble - Single 667 564 1997-1999/ - - - - Choice house/ Apr. 1997 Lardprao/ 106 25-0-58 * Comparing to value of the opened phase Noble Choice Vipawadeerangsit (phase 1) 134 units value 661 mil. Baht ** Construction percentage for income recognition in Phase 1 - The company has jointly invested with Sivanon Construction Co.,Ltd., an experienced construction contractor, in the ratio of 65 : 35 in establishing Research and Consultant Co.,Ltd (with the registered capital of Baht 10 million). By using Steel Techtechnology, this company will operate in home construction business serving for both Nobles projects and general customers. As of March 31, 1997 the company expects that Research and Consultant Co., Ltd. will generate income since July 1997. On the other hand, other home construction subsidiaries of Noble Development Plc. consisting of Ban SukSabai Co.,Ltd. and Noble Property Management Co.,Ltd. will not perform any other businesses in the future except for their current projects - 4 - Future Project Unit: Million Baht Project Name/ Developer Project Project Project Launch Construction Area Type/Unit Value Cost Period Noble House BanSukSabai Condo/210 1,050 871 Early 1998 1998-2000 Lumpini Co.,Ltd. Phase 2 / 2-2-62 Land Bank Land Bank of Noble Development Plc. and its subsidiaries are listed as follows: Location Owner Area(rai) Appraisal Book Value Liabilities Value* Noble Park Noble 19-0-0 38.00 69.56** Mortgaged Moo 12 Sukhapiban Road Kiatnakin Bangplee, Samutprakarn Pinklao (2) Noble 7-1-93 37.40 48.25 Mortgaged Tharingchan, Bangkok Kiatnakin Noble Choice Ladprao Noble 25-0-58 218.63 219.51 Mortgaged Wangthongrang, Bangkapi Kiatnakin Bangkok Noble Choice Vipavadee Wipa 77-1-54 293.11 375.41 Mortgaged Moo 6 Nawongpracha- View Bank of patana Road., Srikan Auidhaya Donmuang, Bangkok Noble House Lumpini Bansiam 2-2-70 299.70 207.69 Mortgaged Chongnonsri, Yannawa Bangkok Bank Bangkok Total 131-2-75 886.84 920.42 * Appraised by Brooke Hillier Parker(Thailand) Co.,Ltd. at Dec. 31, 1995 adjusted by financial advisor at Dec. 31, 1996 ** Including interest expense Future Project (Not included in projection) The company has business strategies as follows - The company will jointly invest with Kosavisuthi group, the producer of insulation wall made of foam and zinc who will provide land for erecting plant, in the ratio of 50 : 50 (with the registered capital of Baht 10 million) to produce the insulation block supporting by technology of Omega Transworld Limited, USA.. The company will be the sole producer and distributor in Thailand, Malaysia and Singapore. As of March 31, 1997 the company expects that it will operate and generate income since July 1997 - 5 - - To be a fully- integrated business firm and to support not only the companys projects but also general customers and retail contractors, the company will expand its business into Home Improvement Store. This store will accommodate state-of-the-art construction materials both domestically produced and internationally produced Investment in As of March 31, 1997 subsidiaries and related companies Unit: Million Baht Company Type of Business Paid up Holding Investment capital percentage/ Value Subsidiary Companies Relationship (at cost) Bangplee View Co.,Ltd Property Development 10 100 12.96 Ban Suk Sabai Co.,Ltd Home Construction 2 50 1.00 Wipa View Co.,Ltd Property Development 200 100 198.49 Ban Siam Co.,Ltd Property Development 102 100 102.00 Continental City Co.,Ltd Property Development 40 100 42.78 World Time Holding Property Development 15 100 60.00 Co.,Ltd Noble Property Housing Construction 2 100* - Management Co.,Ltd * Held by Wipa View Co.,Ltd investment value Baht 2 million Research and Housing Construction 2.5 65 1.63 consultant Co.,Ltd Related Company Ban Siam Holding investment company 135 12.50 142.15** Co.,Ltd ** Ban Siam Holding invested in Noble Development Plc. Related Transaction As of March 31, 1997, the company has related transactions with its shareholder management and related person about 7 % of total sale listed as follows Unit : Million Baht shareholder/management Project Project Value Sale Value Percent Noble Neo-city 704 592 20 3 The Noble 357 357 31 9 Noble House Ruamrudee 216 100 18 18 Total 1,277 1,049 69 7 (more)