SET-listed developer L.P.N. Development Plc will rent a plot from the Crown Property Bureau on Soi Phai Singto in the Klong Toey area where it plans to develop a budget condo project.

Company director Charan Kesorn said it was contacted by the bureau in the middle of last year to develop a leasehold condo project on a land plot of around 600 square wah on Soi Phai Singto opposite Queen Sirikit National Convention Center.

The bureau spent four years studying L.P.N.'s condo development and community management as it planned to improve residential areas on its leasehold plots at various locations.

"We will lease the plot from the bureau and sublet it to individual tenants for leases of 30 years plus 30 years," he said on Wednesday. "The bureau itself will rent out some units to former tenants who used to rent so they can stay on this plot."

L.P.N. is designing the project, which will feature eight-storey buildings with a total of 190 units sized 22 and 26 square metres, priced from 55,000-60,000 baht per sq m, starting at 1.3-1.4 million baht a unit. The project value will be 260 million baht.

If the project gets a good response and selling price increases, the extra profit exceeding the basic profit noted in the agreement between the bureau and L.P.N. will be equally shared among both parties, said Mr Charan.

The most significant condition is a requirement that L.P.N. manage the project throughout the leasehold contract period, he said.

Lumpini Property Management, one of L.P.N.'s subsidiaries, manages 120 condo juristic persons at 310 buildings where 154,000 people reside.

Last year the bureau launched a luxury residential project called Langsuan Village on a 56-rai plot on Lang Suan Road. Several architectural firms are to design it with a total investment of 26 billion baht.

LPN shares closed unchanged on the SET yesterday at 18.60 baht in trade worth 108 million baht.