LPP Unveils 5-Year Strategic Plan (2022 - 2026) to become a comprehensive building management or real estate project management company, partnering with allies to strengthen its position and aiming to list on the stock exchange in 2024, with a sales target of 2.3 billion baht in 2022.

30 Years of Success Leading to Future Growth
Ms. Somsri Techakraisri, Managing Director of LPP Property Management Co., Ltd. stated that with over 30 years of experience in building management, the company has continuously developed its management capabilities. Currently, it serves over 200 projects, 160,000 families, and more than 300,000 residents, not including other continuously growing services.

During the COVID-19 pandemic, the company faced challenges in managing safe coexistence, successfully caring for infected residents within its projects, leading to the development of services under the concept “Cause We CARE,” which includes:

Caution: Planning management in the short, medium, and long term
Assistance: Coordinating to facilitate residents, making everything easier
Rescue: Emergency assistance from support teams to alleviate distress
Empathy: Creating a culture of “unity, care, and sharing.”

“Over the past 30 years, LPP has learned from its work, continuously developing and accumulating experience through various crises, ensuring that with our expertise, capabilities, and readiness, we can manage buildings in all forms and situations, focusing on creating a positive experience for residents in both residential and commercial projects, enhancing quality of life and a culture of coexistence under the concept ‘Smooth Your Living,’” Ms. Somsri said.

This management approach has received positive market feedback, allowing the company to expand beyond managing buildings for L.P.N. Development Public Company Limited in the past. Additionally, the company emphasizes continuous personnel development with its own training institute for over 10 years, focusing not only on quality performance but also on ethics to deliver excellent care to its clients.

Mr. Surawut Sukjareonsin, CEO of LPP Property Management Co., Ltd. (LPP), a property project management company under L.P.N. Development Public Company Limited, revealed the company’s 5-year strategic direction, stating that the goal is to become a leader in comprehensive property and facility management services, targeting total revenue of 2.3 billion baht by 2026, growing from 857 million baht in 2021, representing a leap of over 200% and an average annual growth of 22%, exceeding the average market growth of over 10% annually.

According to the company’s research, the nationwide building management service market is projected to be worth no less than 40 billion baht in 2022, with continuous growth expected due to the recovery of the Thai economy from the COVID-19 pandemic and real estate developers investing in residential, office, and commercial buildings, averaging 300-400 billion baht annually, driving the demand for building management expertise.

With the Thai economy entering the New S-Curve, it presents an opportunity for LPP, with 30 years of expertise and experience in building management, to achieve its growth targets through market expansion, comprehensive service offerings, and the creation of new businesses to meet consumer needs, including engineering, building maintenance, landscaping, pest control, commercial space management, and project management structures in franchise formats. In terms of security services, LPP has established LSS Solutions Co., Ltd. (LSS), which enhances security effectiveness through technology in addition to employing security personnel.

“We are restructuring our business model for project management, expanding from primarily managing projects for LPN to managing buildings for other real estate operators, increasing from the previous proportion of 28% to 45%,” Mr. Surawut stated.

Additionally, the company will focus on increasing revenue from services outside of project management, including new business expansions such as engineering, building maintenance, security systems, cleaning services, landscaping, pest control, and more, aiming to grow from the previous proportion of 30% to 50% by 2026,” Mr. Surawut added. LPP aims to expand its management base from residential projects to commercial buildings, including office buildings, hotels, industrial factories, warehouses, shopping centers, government agencies, hospitals, and more.

Research by the company also found that residents or service users prioritize safety and 24-hour service. Therefore, LPP has adjusted its services, particularly regarding safety. “We have established an Emergency Operations Center (EOC) that consolidates CCTV footage from all projects, equipped with software to detect unusual movements, with personnel monitoring the center 24 hours a day. In case of emergencies or abnormalities, we can coordinate with the projects immediately and liaise with government agencies or emergency assistance units, ensuring peace of mind for residents and service users,”

Additionally, to enhance convenience and reduce living costs for residents in projects managed by LPP, the company has expanded into community commerce services under the name “Living24 Store,” providing a platform for purchasing essential goods and services at lower prices than the market, available 24 hours a day, catering to the modern lifestyle that emphasizes convenience. This is a key strategy in project management, with partnerships with various businesses to offer products and special discounts on the Living24 Store, including Nestlé Pure Life water, Minere natural mineral water, Tipco fruit juice, Samsung, Electrolux, Jenniferoom, LESASHA, @HOME, Lucky Misu, Bear, SMOOTHSKIN household items, LocknLock, FN Outlet, PRALYN, Jason, EVANI, Hafele, and personal storage services outside homes/condos through I-Storego,” allowing customers to access services via the website www.living24.store or through the Line app by adding @Living24Store.

At the end of 2021, L.P.N. Development Public Company Limited resolved to allow LPP Property Management Co., Ltd. to operate independently while remaining part of the L.P.N. Development group, enabling it to set its own policies and business strategies.

2024: Listing on the Stock Exchange
Mr. Apichart Kasemkulseri, Chief Financial Officer of L.P.N. Development Public Company Limited and a director of LPP Property Management Co., Ltd. stated that the service business has growth potential, and with LPP's 30 years of experience delivering value to projects within the LPN group, it is time for LPP to leverage its service business potential to serve external clients.

Furthermore, the financial structure of LPN's service business group is asset-light, resulting in no liabilities, allowing for agile business expansion through increased investment and partnerships in various forms, including business collaborations, joint ventures, and mergers.

“LPN recognizes this business opportunity and is unlocking LPP's business potential by restructuring it to cover all service areas and plans to list LPP on the stock exchange. It is expected that when LPP is listed, its market capitalization will be around 3 billion baht, increasing to 4 billion baht within three years post-listing, which is anticipated to enhance shareholder value for LPN, projecting an increase in LPN's market capitalization from approximately 7 billion baht at the end of 2021 to around 10 billion baht,” Mr. Apichart stated.

In summary, 30 years of LPN have made it a uniquely growing company with four key factors:
- cause we care
- smooth your living
- success from within, proudly presented externally
- unlock intrinsic value

Along with the attractiveness of business operations through:
- no debt
- no assets
- the company’s market has no boundaries, looking towards international markets to care for residents without limits.