In the fiscal year 2018, L.P.N. DEVELOPMENT GROUP experienced a 20% growth, having anticipated the downturn in the real estate sector two years prior. The company has prepared to tackle this by restructuring its business model comprehensively in 2019, equipped with a robust contingency plan to navigate negative factors. With a careful operational direction and a TRIS Rating of A- (Stable), along with a brand trusted for over 30 years, LPN is confident in achieving a total growth of 10% in 2019.

Mr. Opas Sripakdi, CEO and Managing Director of L.P.N. Development Public Company Limited (LPN), stated that the current downturn in the real estate market was anticipated by LPN two years ago. As a result, the company adjusted its business model and strategic planning under the concepts of Year of Shift and Year of Change in 2017-2018 to adapt to the situation and generate income from real estate, recurring income, and service businesses. This led to L.P.N. DEVELOPMENT GROUP becoming the only real estate company focusing on a comprehensive business approach, achieving a 20% revenue growth through various strategies, including:

1. Expanding target groups to higher segments in both condominiums and residential homes, launching premium homes for the first time under the brand “BAAN 365” with the concept “Livable Simple Luxury,” achieving over 50% sales during the presale phase and becoming the Talk of the Town in the real estate sector. Additionally, LPN has developed high-end condominiums and expanded its segment to Gen Y, who have unique lifestyles, under the sub-brand “Lumpini Selected,” with the first project delivered in the Kaset-Ngamwongwan area last year and further projects in the Sutthisan-Sapan Khwai area designed for modern young women.

2. Expanding into the “Office Condo” business with Office Smart systems that facilitate business operations, starting with the “Lumpini Tower Vibhavadi” building, which has received positive responses from several interested parties looking to purchase the entire building, with negotiations currently ongoing.

3. Generating recurring income through the management of projects by Lumpini Property Management Co., Ltd., and income from leasing, including converting units in the “Lumpini Township Rangsit-Klong 1” project, Building F, from sales to rentals. The common areas and amenities have been designed to suit the lifestyle of tenants, ensuring a quality of life akin to living in a condominium.

2019: The Year of Weathering the Storm

For 2019, the signs of a downturn are becoming increasingly evident. LPN has prepared plans to address various negative factors to ensure sustainable growth, targeting a 10% increase by launching projects covering both Value and Standard segments to diversify risks while being cautious in selecting locations for new projects to ensure they align with the organization's strategic potential. All decision-making data is supported by LPN Wisdom, a research unit dedicated to obtaining in-depth information for project development and continuous product and service development. The company maintains high liquidity, with ready-to-move-in products valued at over 7 billion baht, free from financial burdens. Additionally, the company has been rated A- (Stable) by TRIS Rating, indicating financial stability and credibility, which will be beneficial for future fundraising if the company issues bonds.

Operational Direction of L.P.N. DEVELOPMENT GROUP

- LPN Wisdom is another subsidiary representing the “talented people” aspect, established to continuously develop products and services, as well as analyze and research the real estate market in suitable locations for both condominiums and residential homes according to the Product Brand “Lumpini” segments. A Product Development Center has been created to study and continuously enhance product value through a development and research laboratory or Mock Up Center. Furthermore, LPN Wisdom has been recognized as a consultant for green buildings by various government and private agencies.

- LPN Project Management is one of the subsidiaries representing the “talented people” aspect of LPN. In 2019, during the downturn in the real estate sector, LPN Project Management will focus on developing and improving operational efficiency to reduce project development costs.

- LPP Property Management is a key player in the service business, targeting a 20% growth, a significant leap from 15% last year. The primary revenue sources will come from managing communities both within and outside LPN projects, engineering services, and brokerage services for buyers and renters. Additionally, LPP has a customer base of over 150,000 that can be leveraged for future service revenue.

- LPC Service & Care operates various services related to living in projects, such as cleaning and reception services, managed by LPC Social Enterprise, one of the first 15 social enterprises in Thailand, representing the “good people” aspect of LPN, aiming to show care and concern for underprivileged women in the country, creating income, opportunities, dignity, and happiness for these individuals, and demonstrating social responsibility to sustainably reduce social issues.

Mr. Opas further stated that in addition to the overall business direction mentioned above, this year, the company also aims to implement Zero Waste in its operational processes across the Supply Chain, starting with reducing the use of bottles and plastics in sales offices, targeting to reduce over 500,000 items per year, and continuing this initiative in the “Lumpini” projects managed by the company, along with ongoing blood donation activities for over 30 years, aiming to collect 1,300,000 C.C. in 2019.

Thank you for the information from www.lpn.co.th