"Altitude Development" reinforces its 'Turnkey Asset Management' strategy to combat challenges in the real estate sector by welcoming business partners to drive continuous growth. In 2020, the company is targeting the horizontal market, focusing on real demand from homebuyers. They view the market as an opportunity for buyers and are preparing to offer COVID-19 insurance for project visitors, aiming to launch two new projects with a total value of 1.855 billion baht and sales of 2 billion baht.

 

     

       Mr. Chayaphol Hanrungroj, CEO of Altitude Development Co., Ltd. stated that despite the overall economic slowdown and the impact of the COVID-19 pandemic on Thailand and the world, the real estate sector has adapted to the situation. This adaptability has led to Altitude's success as a well-rounded expert in the real estate business. Therefore, in 2020, the company continues to emphasize growth through joint ventures and turnkey asset development as a strategy to navigate the economic downturn.

By collaborating with landowners or buildings that currently generate little or no income and do not wish to invest further or incur debt, as well as those with accumulated capital seeking new business opportunities that yield returns comparable to their current business, the company aims to expand its business base. Altitude has utilized this model since late 2018, currently having three joint venture projects valued at 4.6 billion baht and two joint ventures worth a total of 800 million baht with Creed Group from Japan, Beauty Gem, TQM, and Aurora Group.

In terms of project management and development, the company has begun negotiations with partners who wish to have Altitude develop comprehensive projects, including mixed-use developments that extend residential projects alongside commercial ventures, or brokers with international clients ready to purchase or hire the company for project development. Altitude's project management model includes two completed projects and one currently in progress.

Regarding the direction for new project development this year, the focus is on developing horizontal products to meet the needs of real demand. They plan to launch townhomes priced between 2.59-3.99 million baht under the Altitude sub-brand in the Bangna area, a new segment following the successful sales of condominiums priced between 2.5-4.5 million baht with the Unicorn project under the 'Personalized Development' concept. Additionally, there are plans for luxury single-family homes in the Udomsuk area, with new projects set to launch in Q3-Q4, totaling 1.855 billion baht. This will allow Altitude to cover all market segments, supported by the company's financial status, which anticipates recognizing over 1 billion baht in revenue from completed projects ready for transfer this year.

For the sales target for 2020, the company aims for 2 billion baht, similar to last year, representing significant growth from 2018 due to the effective implementation of business and marketing strategies. In light of the COVID-19 pandemic, the company prioritizes safety for all stakeholders, providing COVID-19 insurance for employees and visitors to Altitude projects starting today. Visitors must register through the company's website www.altiude.co.th.

"This year presents an opportunity for customers with genuine housing needs, given the declining interest rates, coupled with various promotions through online marketing channels that continuously stimulate demand, allowing customers to purchase valuable products. Despite economic uncertainties, some consumers, particularly stable salaried employees, have not been significantly affected. Additionally, successful individuals in the new business era, high-net-worth families, and those with accumulated assets seeking to buy homes—such as those needing proximity to educational institutions for their children or workplaces—have contributed to sales of approximately 2.1 billion baht in 2019, with over 85% of sales in the first two months of this year coming from this customer segment," Mr. Chayaphol stated.

         Mr. Kwanchai Yingjaroenthawornchai, Managing Director of Altitude Development Co., Ltd. mentioned that the joint venture and asset management strategy that has brought success to the company comprises three key components: 1) Land, 2) Capital, and 3) Team. The company's past experience has provided opportunities for business in joint ventures and partnerships, with the team's expertise meeting the needs of three target groups: 1) Landowners, 2) Investors (High-Network) looking to manage surplus cash flow for investment portfolios or those expecting returns of over 15% per year, which is rare, and 3) Brokers (Connectors) who can aggregate buyers or foreign brokers investing alongside purchasing units in the projects.

        "Most landowners wish to develop projects on their owned land. When we bring in expertise and a team to collaborate, project execution becomes feasible for landowners. Similarly, investors, particularly those in the high-net-worth category with available capital, seek to invest in businesses, especially real estate, which offers better returns than other asset classes. The final group consists of those who recognize business opportunities, such as brokers identifying investment prospects, whether selling land or partnering in a joint venture. With the knowledge that Altitude possesses, we have successfully executed several projects, and our experience with these three groups will continue to strengthen Altitude's business model moving forward," Mr. Kwanchai concluded.

Source: Altitude Development Co., Ltd.