Bangkok, 30 January 2020 – Singha Estate PCL. reiterates its vision to become a Global Holding Company and reveals a five-year business plan during 2020-2024 with investment budget of 68 billion baht to fully expand businesses, strengthen its financial status, and enter a new business venture. It is confident that all business units will continue to grow in 2020 and realize revenue from backlog, new residential projects, office rentals, and hotel operations especially the CROSSROADS Maldives.
Mr. Naris Cheyklin, CEO of Singha Estate PCL. or “S”, reveals its business direction during 2020-2024 that the company will allocate a 68-billion-baht investment budget to further expand its businesses and build a long-term sustainable growth.
Of the total investment budget, about 37.5 billion baht will go to develop 30 new residential projects, 8.5 billion baht for 4 new office projects, and the remaining 22 billion baht for the merger & acquisition (M&A) of new hotels and resorts worldwide. Its investment criteria include quality assets, good locations and opportunities to have future value enhancement.
For the residential development business, Singha Estate and its subsidiary Nirvana Daii PCL. will together launch 6 new vertical and horizontal projects worth a total of 10 billion baht in 2020 and introduce 5 new brands to expand from the luxury segment to the upper-middle segment with growth potential.
“It’s a harvesting time for the residential development business after making a big investment. In year 2020, our backlog worth over 6 billion baht will be realized, and we will also launch six new residential projects and target more than 8 billion baht in sales which will be partially sold and realized this year,” Mr. Naris said.
For the commercial business or rental office buildings, Singha Estate has recently acquired Metropolis Building at the cost of 1.725 billion baht. Located near BTS Phrom Phong Station, the Metropolis Building has a total rental space of 14,000 square meters and will drive the commercial business growth along with Singha Complex, whose occupancy rate is on a rise.
Now, the company has three office buildings including Suntowers, Singha Complex and Metropolis Building, all them having occupancy rate over 90%. Over the next five years, it targets to raise total rental office space to 300,000 sq m, from 140,000 sq.m. presently. It is now constructing the S Oasis project, a new office-cum-retail complex on Vibhavadi-Rangsit Road, due to be completed by 2021.
For the hospitality business, Singha Estate through its subsidiary, S Hotels & Resorts PCL. (SHR), has plans to double the number of hotel and resort properties from 39 to 80 by 2025, with projected 15% growth per year. SHR was listed on the Stock Exchange of Thailand on 12 November 2019. Last year, SHR successfully launched the CROSSROADS, the largest integrated tourism and recreation destination worth 10 billion baht in Maldives, which comprises two resorts namely Hard Rock Hotel Maldives and SAii Lagoon Maldives, Curio Collection by Hilton. It also has The Marina @CROSSROADS, featuring luxury yacht marina, retail shops, world-class restaurants, Marine Discovery Center and Maldives Discovery Center, on total space of 11,000 sq m. In 2020, the CROSSROADS will contribute a full-year revenue realization of 2 billion baht and drive a reap growth for SHR.
Furthermore, SHR is preparing a five-year budget of 22 billion baht for the M&A of new hotels and resorts into its portfolio and its investment focus is in leading tourist destinations such as in Asia Pacific and Mediterranean. SHR has a multi-platform business model to facilitate its fast hotel expansion and grow its global network.
“2020 is an important step for Singha Estate to grow further from Global Holding Company’s foundation. We will not only build our sustainable growth but also diversify into the renewable energy business, aimed to start this year to serve global demand of clean energy and build sustainability for the environment,” Mr. Naris added.
Besides, 2020 is the year Singha Estate is determined to grow as a premium and trusted brand in all aspects under the campaign “Singha Estate Enriching Life”, in which it seeks to create sustainable value for all stakeholders. The company develops best-in-class quality properties, offers memorable experiences for customers and sets itself as business practitioner for sustainable development, which is derived from the business philosophy of its parent company - Boonrawd Group.
In the area of sustainable development, Singha Estate has its long-term goal to be a member of Dow Jones Sustainability Indices (DJSI). The company has integrated several UN Sustainable Development Goals (SDGs) into its business practices such as SDG13 Climate Action, which focuses on the reduction of business impact that affects the climate change by lowering carbon footprints in the business development process. It is working on designs to reduce energy consumption, build green construction standards, manage buildings or hotels in an eco-friendly manner, and deliver quality projects that can enhance community well-being and quality of life. In 2020, it also plans to open a discovery center on Koh Samui, organize a running event to promote awareness to reduce marine debris in oceans, organize a change-agent youth camp to promote biodiversity, and build climate-crisis awareness activities in collaboration with employees and all stakeholders.
Overall, Singha Estate will have a continuing growth in 2020. For the residential development business, it has a backlog over 6 billion baht to be realized from the unit transfers at the ESSE Sukhumvit 36 and other residential projects by Singha Estate and Nirvana Daii. Six new residential projects will be launched this year. For the commercial business, rental income will thrive, driven by Singha Complex and Metropolis Building, while the hospitality business will have a reap growth from the full-year revenue realization of 2 billion baht from two resorts at the CROSSROADS.
Following the sustainable growth strategy, Singha Estate plans to build recurring income from hospitality and commercial businesses and sets aside 5 billion baht for M&A activities including entering the renewable energy.
The year 2020 marks an important step for Singha Estate in the Global Holding Company’s roadmap.