The Bay Cliff Company  has set aside an investment budget of up to Bt2 billion from now to 2012 to build residential projects in Phuket starting 2012, the company's general manager Bhumiwat Dhammasaroj said.

This is part of the company's drive to spur its sales to Bt5 billion by 2012.

Nearly  half  of the investment will be drawn from the company's own capital, after an increase in its registered capital, while the rest will be borrowed from banks.

The company's first residential project in Phuket is the BayCliff Patong - worth Bt500 million - on Patong beach. Bay Cliff has successfully sold 50 per cent of the total project value. More than half of the buyers are foreigners who have shown a strong interest in buying a second home in Phuket.

The Bay Cliff Company is owned by a group of property developers who hold experience in developing residential projects in Bangkok and Pattaya. The Bay Cliff Company has a registered capital of Bt50 million, while its subsidiary, Bay Cliff Development Company, which had developed and now manages the BayCliff Patong condominium project, has a registered capital of Bt5 million.

Bhumiwat said the parent company will invest in Phuket only because it believes that the demand for residential projects in Phuket is strong, especially from foreign investors who want to buy a second home - such as resort condominiums - in Phuket.

"The prime locations to build villas are limited. Thus, we will focus on low-rise condominium projects which match our investment budget and market demand," he said.

The BayCliff Patong project is a low-rise condominium project with 54 units across three buildings. The first is four-storeyed while the other two have five storeys. Prices start at Bt100,000 per square metre, or Bt7 million for a unit spread across 70.58 sq m. The highest price going is Bt35 million for a unit with a coverage space of 178 sq m.