Singha Estate Public Company Limited has revealed its business direction for 2022, anticipating a revenue growth of over 100%, reaching a new record high of 13.4 billion Baht. This will be achieved through a strategy of diversifying investments and partnering with allies to strengthen its four core business segments. The company also announced its vision to achieve an average annual growth of 25% over the next five years, actively seeking new business opportunities to capitalize on mega trends and create business synergies while connecting with partners to support growth.

Ms. Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited stated, “In the past two years, Singha Estate has restructured its business, focusing on a diversification strategy to create variety across its four interconnected business segments. This has enabled the company to consistently generate good returns. In 2022, we plan to continue strengthening our revenue and financial position through various projects, including joint ventures with partners and bringing assets into the S Prime Growth Fund (SPRIME). We expect to nearly double our revenue from the 2021 figure of 7.739 billion Baht, aiming for a new high of 13.4 billion Baht.”

Growth in Four Core Businesses to Reach New High of 13.4 Billion Baht

With a strategy of diversifying investments to create variety in operations, Singha Estate has achieved growth across all business segments. The projected revenue of 13.4 billion Baht will come from the residential sector (25%), office buildings (8%), hotels (63%), and industrial estates and others (4%).

Residential Business aims for a 50% revenue increase this year from the transfer of ownership of two ready-to-move-in condominium projects: The ESSE at Singha Complex and The ESSE Asoke, as well as the "Santiburi The Residences" single-family home project, which has a backlog value of 2.6 billion Baht, with an expected revenue recognition of 70% this year. Additionally, there are plans to launch another single-family home project in the Pattanakarn area in the second half of the year, valued at 2.9 billion Baht, which will also generate revenue in 2022.

 

Office Building Business will officially launch the S OASIS project, a new office building with retail space in the Ladprao area, covering a total area of 55,700 square meters. The company aims for an occupancy rate of around 50% in the year of opening, along with the re-launch of the S METRO project, a luxury office building in the Phrom Phong area.

 

Hotel Business has seen a remarkable growth of approximately 88%, generating revenue of 8.5 billion Baht, positioning itself as the second-highest revenue-generating Thai hotel operator. This success is attributed to a well-diversified portfolio of hotels located in key tourist destinations worldwide, particularly in the UK and Maldives, which are among the fastest-growing tourism markets. The hotel business also has further growth potential if the tourism and hotel sectors in Thailand can recover quickly towards the end of 2022. Additionally, the company has been continuously improving and developing its hotel projects to enhance service offerings for diverse customer groups, such as adding pool villa accommodations in Maldives resorts to cater to Middle Eastern clients, as well as balancing the portfolio through asset rotation strategies to elevate service quality and increase average daily room rates by approximately 10-20%. It is expected that newly renovated hotels will generate over 40% additional profit.

 

Industrial Estate Business in 2022 is ready to recognize revenue from land sales and transfers for the first time after investing in land development and infrastructure construction in 2021. The company aims to transfer land this year for about 15% of the industrial estate area, which totals approximately 992 rai.

 

Strengthening Financial Position through Joint Ventures and REITs

In the past, Singha Estate has announced collaborations with partners across various business sectors to expand investment and project development capabilities in all business portfolios. This includes a joint venture with Hongkong Land to expand its international customer base and develop the ultimate luxury condominium project, The ESSE Sukhumvit 36, valued at over 5.9 billion Baht, and a partnership with leading real estate developer WEWD to develop a new resort project with 80 luxury villas, “SO/Maldives,” which will complement two other leading resorts, supporting the “Crossroads Maldives” project to meet diverse customer needs across all price ranges.

 

Additionally, Singha Estate plans to lease three premium office buildings and retail spaces, including Singha Complex, S Metro, and Sun Towers, to the S Prime Growth Fund (SPRIME) to align with the company's portfolio management strategy, which will recycle capital to strengthen financial stability and support continuous business expansion, aiming to position SPRIME as the number one office building trust.

 

At the end of 2021, Singha Estate invested in the industrial estate and infrastructure sector by holding a 30% stake in B.Grimm Power (Ang Thong) 1 Co., Ltd., which operates a combined heat and power plant with a capacity of 123 megawatts. In 2022, the company will recognize the full-year performance of the power plant for the first time. Furthermore, it has also invested in B.Grimm Power (Ang Thong) 2 Co., Ltd. and B.Grimm Power (Ang Thong) 3 Co., Ltd. to develop two more combined heat and power plants with a total capacity of 280 megawatts, which are expected to commence electricity generation in 2023.

Expanding Business to Meet Market Demand through Internal Synergies and Business Partnerships

Ms. Thitima also shared her vision and direction for Singha Estate's business over the next five years, focusing on creating synergies across four business segments to connect with new business opportunities and strengthen the company's portfolio while addressing current market demands.

“To position Singha Estate as one of the leading real estate developers in Thailand, integrating comprehensive real estate and related service businesses, we have studied trends in business and lifestyle changes after living in the new normal for over two years. We see opportunities to create new business models that will enhance our business portfolio's potential in the future. At the same time, we will leverage our four business segments to create joint ventures that strengthen our portfolio. In this growth phase, we will not go alone; working with partners in joint ventures has shown broad success. We are currently seeking opportunities to collaborate with various partners to meet market demands and create the best differentiation for our company. We expect these efforts will drive our business growth by an average of 25% per year over the next five years,” Ms. Thitima concluded.