Aims to triple revenues in three years
Eyes industrial estates, power generation, and engineering services
Bangkok, 1 March 2021 – Singha Estate PCL (S), a leading Thai property investment and development company, today, announced that it is pursuing a strategic broadening of its business by integrating its traditional property businesses with industrial estates, power generation, engineering services, and other related businesses.
Mr. Chutinant Bhirombhakdi, Chairman of the Board of Directors of Singha Estate PCL, said, “This is a milestone year that marks our transition into the next phase of Singha Estate’s development journey. We are embracing complementary and innovative businesses to become one of Thailand’s foremost enterprises that leverages the synergies between property, power generation, and related services to deliver high growth with strong returns.”
“During the past years, we focused on transitioning from our beginnings as a family company managing family real estate assets, to becoming a professionally run, publicly-traded company with assets in multiple property sectors and across multiple geographies. As we look ahead, we are confident in the future of Thailand as the base of our operations and will also continue to seek additional growth, globally,” he said.
Mrs. Thitima Rungkwansiriroj, Chief Executive Officer, Singha Estate PCL, said that Singha Estate aims to triple annual revenues to around Bht 20,000 million in three years and grow assets to Bht 80,000 million from Bht 65,000 million, as at the end of 2020, while also growing its margins.
“The emergence of many extra-large-scale development projects in Thailand and Singha Estate’s integrated approach that combines hospitality, residential, commercial and industrial property development with power generation and related innovative services and businesses will give Singha Estate unrivaled advantages in capturing some of these huge, new opportunities,” she said.
Mrs. Rungkwansiriroj said that the Covid-19 pandemic had affirmed the company’s decision to structure and balance its business across four, connected platforms to “secure dependable returns in an increasingly unpredictable local and global business environment”.
In 2020, three of the business platforms – commercial property, residential property, and resorts and hotels – contributed 96% of the company’s core revenues.
“We now wish to ensure that our fourth platform – new businesses that complement our core property businesses – may contribute a significantly greater amount,” she said.
“Our ‘Four Platform’ approach makes us unique and opens up much wider commercial opportunities than would be possible as a pure property development company. It also gives us greater competitiveness through complementarities, commonalities, and integration, as well as greater stability through portfolios that have different business cycles, different risk profiles, and an ability to generate recurrent income.
“Our strong financial position evidenced by our low debt-to-equity ratio of 0.96 times and access to Bht 25 billion in credit facilities makes this a good time to build the fourth platform,” Mrs. Rungkwansiriroj added.
She said that Singha Estate is also exploring a globally innovative approach to its hotel and resorts business that will add to its resilience.
According to Mrs. Rungkwansiriroj, Singha Estate aims to enter local and global partnerships that will bring competitive expertise and additional global reach.
Singha Estate’s commercial property businesses include 140,000 square meters of commercial office and retail space contributing approximately 15% of its total revenues in 2020. It has 39 hotels and resorts with 4,647 keys across five countries, contributing approximately 24% of revenues. And, it has 23 residential development projects that include landed residential properties and condominiums under the brand Santiburi, The ESSE, and others contributing 57% of its revenues.