Noble Development Public Company Limited (NOBLE) has successfully completed the investment sale and share transfer process for two projects, New District R9 and New Cross Kukat Station, on July 25, 2023. The company received over 1.4 billion baht in cash immediately, which will be recorded as special profit in Q3/2023, strengthening the company's financial performance.

Mr. Thongchai Busarapant, Vice Chairman and Co-CEO of Noble Development Public Company Limited (NOBLE) revealed that the board meeting and the transaction on July 25, 2023, marked the completion of the share sale to Proud Real Estate Public Company Limited (PROUD) as per the agreement. The deal involved the sale of shares in Rama 9 Alliance Co., Ltd. and Kukat Station Alliance Co., Ltd., where Noble Development holds a 50% stake in collaboration with the BTS Group and Sahapat Group, which jointly developed the New District R9 and New Cross Kukat Station projects launched over the past two years. Currently, the New Cross Kukat Station project has achieved 100% sales, while the New District R9 project has over 80% sales, with a total project value exceeding 8.6 billion baht.

Furthermore, the share sale positively impacts the company in terms of immediate profit recognition upon transaction completion and rapid cash inflow. The company can utilize this cash for reinvestment in new projects with higher returns. The sale of shares in both companies aligns with the company's strategy to maximize return on equity (ROE) and internal rate of return (IRR) by reducing holding periods and realizing reasonable profits, thereby creating added value for future growth.

Additionally, the company will receive returns in the form of profit-sharing from project management from its partners, calculated based on the internal rate of return (IRR) achieved from the investment sale, resulting in cash inflow of over 1.4 billion baht from this transaction. The company will continue to manage both projects as project managers to oversee construction and deliver units to customers, as well as manage post-sale services according to the sales agreements made with each customer.

For its operations in 2023, the company remains on track to launch 9 projects valued at over 22.1 billion baht. In the first half of the year, the company achieved pre-sales of over 8.4 billion baht, in line with planned estimates, supported by continuous demand growth in both domestic and international markets, resulting in a backlog of over 16 billion baht, which will facilitate ownership transfers and generate good revenue recognition and returns in the second half of the year,” Mr. Thongchai concluded.