Thailand's largest industrial estate developer, Amata Corporation Plc, expects stronger performance in the second half due to the improving global economy and more stable local politics.
The listed developer forecasts industrial land sales of 300 to 400 rai in the second half, after selling only 50 rai, a 74% year-on-year drop, in the first half.
"We have a number of potential customers on hand that have been negotiating for a long time. I am confident that these investors will finally conclude their purchasing deals with us within this latter half of the year," said director Viboon Kromadit.
"Investment decisions have been delayed for too long and improving economic indicators should bring interest."Amata's forecast assumes there will be no further political unrest to dampen investor sentiment.
The company is in discussions with investors from the agricultural, automotive and chemical industries, said Mr Viboon.
Land sales account for 38% of the group's income with the rest coming from utilities supply and rental charges.
Amata hopes to attract Chinese investors and benefit from a Chinese venture fund that will invest in Thailand.
Chinese investors are forming a 20- billion-yuan (100-billion-baht) fund to finance investments in Thailand. The fund, which will be finalised by year-end, will facilitate more Chinese companies building production plants locally.
Chinese firms that relocate to Thailand will be supported by the government policy to promote foreign investment. China's poor reputation for product quality has led many firms to relocate to countries such as Thailand. Rising labour costs in China is also seeing companies shift their operations elsewhere, he said.
Mr Viboon said he was confident Amata's strong relationship with Chinese investors will allow it to gain from the venture fund more than other industrial estate developers.
AMATA shares closed yesterday on the SET at 6.70 baht, down 10 satang, in trade worth 109.69 million baht.
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