Fragrant Real Estate Thailand Development Group Ltd plans a residential and hotel project worth four billion baht in the Makkasan area of Bangkok as it is confident in the country's economic fundamentals, according to president James Duan. The site will have condominium units, serviced apartments and a hotel.

The Makkasan area is poised to be the hub for the airport rail link to Suvarnabhumi Airport, with additional office and retail development expected to create more demand in the residential market.

Mr Duan said his company believed the reopening of the old Don Muang airport to alleviate pressure on Suvarnabhumi would be temporary, adding that the government was committed to investing about 100 billion baht in the airport rail link.

Late last year, Fragrant spent 500 million baht to acquire a five-rai plot of land in the Makkasan area from Bank of Ayudhya. It is now designing the project and expects to begin construction next year.

''The company believes that the change in the Foreign Business Act will have marginal impact on its project because the company's structure already complies with the law with a 60% stake held by Thais. The company is committed to long-term investment,'' said Mr Duan, a second-generation ethnic Chinese from Burma who has been in Thailand for more than 20 years.

Other shareholders of the Fragrant group include the Lu family, who control the third-largest developer in Taiwan.

''We are also confident in the Thai economy. As long as there is consumption in the country, there will have continuous investment in Thailand,'' Mr Duan said.

Fragrant is now selling its Prime 11 condominium located on a two-rai plot in Sukhumvit Sou 11. The 1.4-billion-baht project will house 212 units sized between 34 and 348 square metres with prices starting from 79,000 baht per sq m, or between 3.3 million and 36 million baht.

Since sales began in December, 45% of the units have been sold with Thais as the majority buyers. Foreign buyers are still hesitant as Fragrant is still a relatively new name among developers in Thailand. It expects to close sales by the end of this year. Construction will start by the end of this month and be completed by 2009.

The company also expects to generate 100 million baht in revenue from transferring units at another completed condominium, Fragrant 71, in Sukhumvit 71.