Pruksa Real Estate Public Company Limited (“Company”) was founded on April 10, 1993 with the initial registered capital of Bt50.0m It engages in the business of real estate project development for single-detached houses, townhouses and condominium in Bangkok Metropolitan Region and potential provinces. The investments are also expanded to foreign countries such as India. On April 27, 2005, the Company converted itself into a public limited company and entered into the first trading in Stock Exchange of Thailand (SET) on December 6, 2005 under the ticker “PS”. On November 30, 2016, the Company revoked from being listed security in SET.
The Company is the first developer in Thailand that has applied modern technology from foreign countries in residential construction and construction management by itself, resulting in the ability to effectively control standard quality of works, control construction period as plan, and manage construction cost throughout the past period. The Company also aims at continuous developing construction technology and innovation for delivery of quality and impressive products and services to customers.
Significant Development during the Past 5 Years
Year 2013
The Company announced its new vision that “Pruska aims to be the number one residential real estate brand in customers’ minds, and step upward being a top ten residential real estate in Asia by creating valuable homes for every family to experience happiness, warmth and a better life every day”. The Company has restructured its organization management so that business operation satisfies customer needs of each segment and each level. The executive responsibilities are divided based on housing segment under focus on innovative creation in construction of quality houses and excellent services for management flexibility to be corresponding to varying competitive situation of real estate market all the time. In this year, it has been deemed to be the golden year of PS huge success whether in the matter of highest record-breaking sales volume, total ownership transfers, number of transferred units.
The Company developed prefabricated bathroom in condominium project (starting the installation in 2014) for higher quality and attractive design, abatement of subsequent usability problem, and ability of quick delivery, abatement of labor shortage and unskilled labor problem.
The Company developed the Fully Precast System for constructing an eight-storey condominium project (Low Rise). This is the Company’s strength that reduces business cycle time and simultaneously solves labor shortage problem, and changes in quality of site operation to be factory manufactured prefabrication. The knowledge has been extended from the Company’s expertise in townhouse/single-detached house, under the period of integration of REM Management System with the said new construction technology, and analysis of AIT on earthquake-resistance of that structure.
The Company advanced the application of BIM (Building Information Management) as an aid in three-dimensional drawing. BIM in technical language is abbreviated from Building Information Modeling. BIM has also reduced drawing conflict that will cause problem during construction procedure, and aided in complete estimation of material quantities and reduced various work procedures to be computerized calculation system.
For growth support under the Company’s business plan, the Company has invested Bt2,300m to purchase 130 Rais of land at Navanakorn Industrial Estate in Pathum Thani Province for constructing additional two Pruksa Precast Concrete Factories (PCF6 and PCF7). PCF6 is Fully Automated Carousel System Plant which is the Carousel Plant being imported from Germany and having highest production capacity of Bearing Wall of the world, applying computer system in control of every production process. PCF7 is the Pre-stressed concrete Slab & Beam Factory applying Long Bed System as production system which is also the modern technology from Germany.
The new Pruksa Precast Factory at Navanakorn is the first Green Factory in Thailand that contributes to abatement of pollution arising from noise, dust, and waste water. The world most advanced technology and machinery from Germany are applied in this factory. Robot is employed in the production process in order to reduce manpower shortage problem In the production process, the automated system is computer-controlled, resulting in ability to produce above-general standard quality work pieces. In addition, concrete recycling system is applied in order to reuse waste water and concrete debris from working process in the production process once again, resulting in no material leftover from the production and environmental friendliness
The Company increased the registered capital from Bt2,213.2m to Bt2,222.8m from exercise right under warrant for purchase of common shares.
The Company increased the registered capital from Bt2,250.8m to Bt2,265.8m by issuing additional common shares to support the exercise of right under warrant for purchase of common shares of Pruksa Real Estate Pcl. in total of 15,000,000 shares at par value Bt1 per share.
Year 2014
The “I-Inspection II” program is initially launched to test in the townhouse projects under the brand of “Pruksa Ville” in February in order to increase the effectiveness of home-delivery inspection for the customers through tablet instrument. The delivery of home has become faster and satisfactory. Thus, the application of such program has been expanded to other brands within the Company.
The Customer-base expansion strategy is applied to other product segments for more coverage. In March, premium single detached house project was launched under “The Palm” brand on Phatthanakan Road, at price range between of Bt9-25m per unit. Precast has been used at the premium house and well accepted by the customers. The first phase was sold out within a short period of time.
Cost management has become more effective. Pruksa Precast Technology and Pruksa REM (Real Estate Manufacturing) has been applied, contributing to cost control, reduction of business cycle time for low-rise housing from 146 days to 87 days in 2013 resulting in quick house transfer to customers and revenue recognition on target. Moreover, the Company can perform more worthwhile selling pricing than other entrepreneurs that produce the same level of products but with 10 - 15% higher price than Pruksa Real Estate Pcl.
PCF2 changed its primary production from fence and parapet to produce Bathroom Pad Factory which was started its production in May 2014 under production capacity of 4,000 units/year.
The company has used prefabricated bathroom in condominium projects such as Plum Condo Bangyai and Plum Condo Rama 2. The use of Precast bathroom for low-rise projects has also been under study of the Company. This can contribute to shortening of the construction period and better quality bathroom.
Two Pruksa Precast Factories (PCF) - Navanakorn, PCF6 and PCF7, have partially started its production of Bearing wall, Pre-stressed concrete slab & beam since September 2014 under total approximate production capacity of 480 units/month. After combination with five existing factories at Lamlookka under production capacity of 640 units/month, the Company’s total production capacity is high up to 1,120 units/month which is consistent with the launching plan of new project and delivery plan of increasing quality houses to customers in each year.
The Company increased the paid-up registered capital according to the exercise right under warrant for purchase of common shares from Bt2,222.8m to be Bt2,226.7m.
The Company decreased the registered capital by cutting off unsold stock of PS in total of 10,513,200 stocks at par value Bt1 per share and registered for amendment of Memorandum of Association in Clause 4 with Ministry of Commerce to be consistent with decrease of registered capital from Bt2,265.8m to be Bt2,255.3m.
The Company increased the registered capital to support the issuance and offering for sale of warrant in total of 15,000,000 shares from the registered capital amount of Bt2,255.3m to be Bt2,270.3m at par value Bt1 per share.
Year 2015
In 2015, the company has started its slogan of “Create Value for Customer” to reflect the promotion of Pruksa Value in the area of creative innovation invention for clear application within the organization since the core business is “Creative thinking” behind the valuable products and services which are generally useful for customers and society. The devotion and advancement of ongoing innovation development has caused confidence and acceptance of the consumers on the Company’s residences. In 2015, the Company was ranked as the number one in real estate business segment in the area of “Innovative creativity” from BrandAge Magazine and Company Magazine from research “Thailand’s Most Admired Company 2015”.
Due to the Company’s customer group expansion plan by focusing on home model to be distinguished from the competitors in the market and support increasing land prices. The Company therefore has firstly developed the 3 storey single detached premium house brand project named “The Plant Elite” on Phatthanakan road with starting price of Bt9.7m. This project has been well accepted from the customers.
The Company increased the paid-up registered capital from the exercise of right under warrant to buy common stock from Bt2,226.7m to be Bt2,231.1m.
The Company increased registered capital to support the issuance and offering for sale of warrant to buy common stock of the Company to the Company’s directors and executives for 15,000,000 units from registered capital of Bt2,270.3m to be Bt2,285.3m at par value of Bt1 per share.
Year 2016
The Company established holding company under the name of “Pruksa Holding Public Company Limited”. The main objective is to increase flexibility of business expansion to new business that can generate continuous revenue and profit in long term Pruksa Holding Public Company Limited will be the listed company in the Stock Exchange of Thailand in the category of real estate business. The Company’s securities will be simultaneously delisted from SET and remain mainly operating real estate business under governance of the Board that manages under good governance like nowadays. Three core driving strategies for 5 years ahead to attain the objective of business creation with continuous and sustainable growth are as below: 1. To maintain the leader in real estate market for low to middle income (Value), 2. To increase market share in upper residence market (Premium), and 3. To find the opportunity of new business operation by focusing at the business with continuous secure and sustainable recurring income generation.
The Company has developed product brands to satisfy customer demand in all customer groups categorized by product group. In 2016, the Company has adjusted its brand building strategy under emphasis on building strong and potential brand for long-term development as follows:
Product Brand of Townhouse Group
:
Baan Pruksa, Pruksa Ville, The Connect, Patio
Product Brand of Single Detached House
:
Passorn, The Plant, The Palm
Product Brand of Condominium Group
:
Plum Condo, The Tree, Chapter One Condo, Urbano, IVY
The Company has mutually developed modern innovation for residence construction with the expertise of residence innovation from Germany and developed Model Project of “Pruksa Plus House” at The Plant Estique-Phatthanakan 38 to meet the residence demand in all of 4 Consumer Mega Trends consisting of
Safety Home
Healthy Home which is the home that cares for health and elders and indoor function is designed to facilitate the elders such as slope for wheelchair
Green Home where alternative energy is used such as installation of solar cells, Ice Storage / Hot Water Storage System and
Smart Home where application is used in control of on-off switch of air-conditioner and indoor CCTV on smart phone, etc.
Due to the Company’s emphasis on applying innovation for quality home, the Company was then awarded for “International Quality Crown Awards 2016” at London, UK. The said award was organized by Business Initiative Directions (B.I.D) which is the organization that gives precedence to and aims at quality and innovation. Pruksa is the only company in Thailand which was awarded for the said award because of remarkableness in applying new innovation and technology in every work process, Pruksa therefore can deliver quality homes to its customers. This was deemed as guarantee of Pruksa residence construction quality in global level stage.
The Company entered to be the member of “Collective Action Coalition Against Corruption Council” and granted for membership certificate for Thailand’s Private Sector Collective Action Coalition Against Corruption. The Company also organized “Pruksa Corporate Governance Day” or Pruksa CG day 2016 to build self-consciousness to all levels of personnel for transparent operation under good governance by adhering to three following aspects:
Governance consisting of good governance responsibility, fairness preservation with all parties, and anti-corruption in all forms,
Growth consisting of contribution to corporate creation for sustainable growth, and
Process consisting of valuable creative work process and transparent and fair management for every party, and accountability.
The Company has responded to the government policy by joining “Baan Pracharath” Program through offer of quality houses and condominiums in total value of Bt4,700m both in Bangkok Metropolitan Region and upcountries to help people have their own residences.
In community and social responsibility, the Company donated 144 Rais of land in Khlong Sam Sub-district, Khlong Luang District, Pathum Thani Province, to meet the royal speech of Her Royal Highness Princess Maha Chakri Sirindhorn, in extension of the result of Reservoir Rama IX Royal Initiative Project”, to be utilized as Kaem Ling Project to assist the agriculturalists in draught encountering period and to be water catchment place for disaster problem alleviation.
The Company increased paid-up registered capital according to exercise of right under warrant for purchase of common stock from Bt 2,231.1m to be Bt 2,232.7m.
The Company decreased the registered capital by cutting off unsold stock of PS in total of 52,616,800 stocks at par value Bt1. per share and registered for amendment of Memorandum of Association, Clause 4 with the Ministry of Commerce to be consistent with decrease in registered capital from Bt2,285.3m to be Bt2,232.7m.
The Meeting of Shareholders approved on amendment of the requirement on right and duty of debenture issuer and debenture holder according to restructuring plan under the following details: (1) to cancel the requirement of the Company’s duty in preserving as the listed company in Stock Exchange of Thailand, and (2) to increase coupon rate of each tranche of related debenture in the rate of 0.1% whereas calculation is started from (and including) delisting date of the Company’s common shares from being listed company in Stock Exchange of Thailand.
Year 2017
To maintain leadership in real estate business and satisfy consumer demand which is changing all the time, the Company therefore has formulated “Pruksa 4.0 Strategy”, emphasizing on applying four perspectives of new innovation such as
Smart - Product in product development for value addition such as design of indoor function for more customer convenience,
Smart - Marketing under marketing basis using Digital Marketing for consistency with life style of customers in digital age,
Smart - Home Application where Home Service Application is developed to gather complete services apart from home services such as car wash, beauty salon and laundry services, etc.,
Smart - Construction where world modern construction innovations of “Pruksa Precast Innovation” and “Pruksa REM (Real Estate Manufacturing) System Construction Innovation” are applied.
The Company operates according to a key corporate strategy which is core business expansion in real estate for sale, and base expansion toward customer base group with new income. In this year, the launch of five projects in premium market such as The Reserve Thong Lor, Chapter One Shine Bangpo, The Reserve Phahol-Pradipat and The Reserve Sukhumvit 61
The Reserve and Privacy have been reused for condominium project development to extend success. According to launch for sale of this brand in last year and product development in new brand for customer base expansion. The Company has rebranded Pruksa brand to upgrade brand image level to be fashionable and more styled under “Live Inspired” Concept as your own living model and entirely adjusted the usage guideline of advertising media.
The Company was granted for Green Building Standard Certification from German Sustainable Building Council (DGNB) which is the institute of Germany that supervises on green building assessment. “Pruksa Plus House” Home Model at The Plant Estique-Phatthanakan was certified by the Company. Pruksa Real Estate is the first real estate company in Asia that was granted for Energy Conservation Home Certification according to standard of platinum level world institute standard which is the maximum standard of the institute.
The Company mutually signed in Memorandum of Understanding with CP All to establish 7-Eleven Convenience Food Store inside all single detached house, townhouse and condominium projects of Pruksa in value business group to facilitate Pruksa customers. The first three 7-Eleven stores are Pruksa Ville 92 Onnut- Suvarnabhumi, Delight Circle - Watcharapol, and Scenery Soi Kaew-In 25.
“International Star for Quality Award 2017” in class of Platinum was awarded at Geneva, Switzerland due to remarkableness of the Company in corporate cultural promotion in the matter of continuous quality, professionalism and extensive accepted achievement. This was deemed as residence construction quality guarantee of Pruksa in global level stage.
“Pruksa Family Privilege” Project was launched to offer the customers discount and privilege in the matter of residence that meets the customer needs for every lifestyle under cooperation with more than 108 leading brands of hotel, resort, furniture, furnishings, electric appliances, and restaurant, to offer maximum discount up to 70% and many privileges.
“NACC Integrity Awards” organized by Office of the National Anti-Corruption Commission was granted due to transparent business operation, anti-corruption, and accountability to be in line with the principle of good governance.
Product brands were developed to satisfy demand of all groups of customers under classification of product group.
In 3 February 2017, the Company issued two tranches of debentures in total of Bt5,000m dividing into 2.9 years and 26 days in value of Bt2,400m and 3.5 months and 28 days in value of Bt2,600m and maturity date of debentures is in 2019 and 2020, respectively.
In 15 June 2017, the Company issued one tranche of debenture in value of Bt2,500m for 3.5 years and 5 days duration and maturity date of debenture is in 2020.
In 19 September 2017, the company issued one tranche of debenture in value of Bt2,000m for 3.6 years duration and maturity date of debenture is in 2021.