BAM announced its 2013 strategic plan about releasing the assets

          BAM announced the strategic plan of 2013 about an arrangement of active activity to boost sales for breaking the target. BAM has purchased and received NPL and NPA in total value of 154,669 million baht from financial institutes for management. It is pleasure that the performance of 2012 beyond the target with cash collection of 13,612 million baht, compared to the target of 12,000 million baht, and the net profit of 3,257 million baht.

          Mr. Krit Sesavej, the President of Bangkok Commercial Asset Management Co.,Ltd. (BAM), revealed that BAM’s performance of 2012 was satisfying. The revenue from debt restructuring and sales of assets had integral value of 13, 612 million baht, or equivalent 113.43% of the target at 12,000 million baht, and the net profit was 3,257 million baht.

          Regarding BAM’s operation in 2012, the asset was increased by purchasing and transferring of non-performing loans (NPL) and non-performing assets (NPA) from financial institutes, totally 154,669 million baht. The value purchased from Thai Asset Management Corporation (TAMC) was 135,388 million baht. Currently, BAM owned 55,857 items of NPL with value of 369,919 million baht and 12,923 items of the NPA with value of 37,997 million baht.

          Mr. Krit has also said about the target of 2013 business plan that it would be focused on sustainable growth of the business and expected for continuous growth of the 2013 performance. The cash collection of 2013 was forecasted to 13,735 million baht, or around 13,612 million baht higher than of 2012. The net profit of 2013 was forecasted to 3,602 million baht, around 10% higher than of 2012. BAM also planned to increase NPL/NPA to be around 18,000 million baht by bidding from financial institutes and purchasing from Legal Execution Department.

          For NPL management strategy, BAM planned to categorize debtors by type and quality, including determine management guidelines and negotiation criteria to be suitable for each debtor for efficient dispute resolution. After debt restructuring, there would be monitoring and controlling system to keep conditions and urge for auction process.  

          For NPA management, BAM focused on managing of non-performing assets which are held for more than 5 years by categorizing problems and low liquidity assets, including creating suitable operation plan for each problem. The target sale of such assets was set at 2,250 million baht. In the same time, we also rushed in development and renovation of non-performing assets in each project to make them have good quality for selling to customers.

          The President of BAM also said that the 2013 marketing plan was focused on releasing non-performing assets by arranging the booth in several events, including using sales promotion strategy for each asset. The first asset group was the condominiums with the price lower than 500,000 baht, which had 1,550 units with total value of 349 million baht, for example; Platong Condominium, Pathum Thani; Hatairat, Lamlukka, Pathum Thani; Popular Condo, Impact Muangthong Thani; and Bansuan, Bangbuathong, Nonthaburi. We used the strategy of offering special discount and installment payment for the assets with the price lower than 2 million baht, for retail purchasers. 

          The second group was the single houses and townhouses with the price lower than 3 million baht, which had 831 units with total value of 816 million baht, for example; Duliyatip single house, Prachautit 76; Romklao housing community; Rangsit housing and townhouse; Chatpailin townhouse, Ladlumkaew, Pathum Thani; Smart Townhome, Bang Bor, Samutprakarn; Arsahouse 5, Karnjanapisek, Bangyai; Pimonraj 3, Sai Noi, Nonthaburi; and Montri townhome, Wangthonglang, Bangkapi. We used the strategy of offering special discount and installment payment for the assets with the price lower than 2 million baht, for retail purchasers and also cooperated with financial institutes for lending retail purchasers.

          The last group was 7,271 pieces of land with total value of 22,327 million baht, for example; the land in Chatpailin project, Ladlumkaew, Pathum Thani; in Sinbodi project, Bangbuathong, Nonthaburi; in Sinthorn-Rangsit project, Bangpoon, Pathum Thani; in Sampaothong project, Lam Phak Chi, Nong Chok; and in Warocha 6 project, Bang Bo, Samutprakarn. We used the strategy of offering special discount and installment payment for the assets with the price lower than 2 million baht, for both retail purchasers and also cooperated with financial institutes for lending retail purchasers and selected the land in upcountry for allocation to support customer’s requirement. 

          Moreover, BAM has arranged and planned to arrange the sales promotion activity, which is the bidding for investment by focusing on each individual group, with the total value of assets of 3,000 million baht in March, June, and October 2013. Our strategy is to build up Corporate Team for providing the assets’ information including selecting attractive assets for bidding. The sample assets are the land beside the Chao Phraya River, Ta Din Daeng, Klong San which has the area of 7 rai and the value of 500 million baht; the land with construction building, Hang Dong, Chiangmai which has the area of 132 rai and the value of 200 million baht; and the land in Had Yai, Songkla which has the area of 2,000 rat and more value than 500 million baht.

          However, the President said about the privatization and shares listing on the Stock Exchange of Thailand that BAM has already arranged the meeting to brief the financial advisors about the Terms Of Reference (TOR) in the listing of BAM’s shares on the Stock Exchange of Thailand. There were 24 companies joined the meeting to acknowledge about TOR, although there were only 7 companies submitted the offers and passed the selection based on the fundamental qualifications. After receiving the strategic plan from the financial advisors, we would submit the plan to FIDF committee for consideration, then the service contract of the financial advisors would be signed by this February 28.