SET Announcements
THE SET ADDS SECURITY - NOBLE
09 June 1997
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
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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
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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
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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
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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
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- 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)