MAI-listed developer Chewathai Plc (CHEWA) yesterday acquired Aria Asoke, an under-construction condo project of SET-listed developer AQ Estate Plc, for 586 million baht.

Managing director Boon Choon Kiat said the investment was attractive as the project was located in a prime location and had sold out on launch date in the third quarter last year. He added that selling prices of resale units at the project and other condo units nearby had risen.

"Return on investment from acquiring an existing project is faster than that from starting developments from scratch," he said. "We can continue construction of this project and complete it by the end of next year -- only 19 months from today."

The building, formerly Aria Asoke, will be rebranded to Chewathai Residence Asoke

He said it would take up to three-and-a-half years to complete a high-rise condo development after securing a land plot, adding that time would be lost waiting for an environmental impact assessment.

After buying the Asoke site yesterday, the company will rebrand it as Chewathai Residence Asoke and would be willing to buy back any units from buyers if they are unhappy with the change in the project's developer.

The project, which is 20% completed, is located on a 1.5-rai site on Asok-Din Daeng Road. It is a 29-storey building and a total of 315 units worth a combined 1.7 billion baht. Average selling price during the launch period started from 140,000 baht per square metre.

He said it was the company's third acquisition, following the 26-storey Chewathai Interchange condo, with a sales value of 1.3 billion baht it bought in late 2012. It also purchased the eight-storey Hallmark Chaengwattana, with a sales value of 800 million baht, in 2014.

Both generated a gross profit margin of 25-30% and a net profit of at least 10%.

"The first two projects were sold to us as the [previous] owners were non-property developers and might not have had experience in condo development," he said. "For the Asoke project, the developer had no financial problems but agreed to sell to us anyway."

Mr Boon added there were several existing condo projects offered for sale but most of them were in poor locations where either supply was too high or demand was too weak.

CHEWA shares closed yesterday on the MAI at 1.72 baht, down five satang, in trade worth 86 million baht.