Singha Estate Public Company Limited, a leading real estate development and investment company in Thailand, has unveiled its aggressive plan to penetrate the high-end residential market. The company is preparing to invest over 35 billion baht in developing projects in prime locations over the next five years, with expectations to generate no less than 10 billion baht in revenue by 2026. The company aims to position its high-end residential segment as the main portfolio for growth, following its significant success with previous real estate projects, including the low-rise housing project "Santi Buri The Residences" and luxury condominiums such as "The ESSE at Singha Complex" and "The ESSE Asoke."

          Ms. Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited, stated, "Last year, Singha Estate underwent a major restructuring of its residential business by selling its subsidiary responsible for developing low-rise projects. This move allows Singha Estate to independently develop its own low-rise residential projects. We have also developed a strong business expansion strategy and continue to advance high-end projects to achieve our goal of 10 billion baht by 2026, with a project ratio of 75% low-rise to 25% high-rise. For 2022, all transfer of ownership will come from projects developed by Singha Estate, and we are confident in maintaining and growing revenue from ownership transfers through efficient project investment services and meticulous marketing plans, as well as our ability to recognize revenue from our flagship projects."

 

In 2022, Singha Estate expects to recognize revenue from the low-rise housing project "Santi Buri The Residences," which has a backlog value of 2.6 billion baht, anticipating to recognize 70% of this revenue this year. Additionally, the company plans to transfer ownership of two ready-to-move-in condominium projects, namely The ESSE at Singha Complex and The ESSE Asoke, and will also recognize profit shares from various joint venture projects.

          "Given the positive market signals and our revenue recognition capabilities this year, we expect to achieve approximately 50% revenue growth in 2022 and aim for over 10 billion baht in revenue in the next five years, representing an average growth rate of about 27% per year. We are set to become a leader in high-end residential development, with plans to continuously launch new projects, including a low-rise housing project valued at 2.9 billion baht, which will debut in the second half of the year. Other projects will be gradually launched starting early next year. We have allocated an investment budget of about 35 billion baht, or approximately 65% of the total investment over the five-year period, for purchasing and developing land for residential business. We have already purchased and deposited several plots of land, ensuring we can develop residential projects in prime locations that meet the diverse needs of high-end customers as planned. Furthermore, we see the residential business as a highly potential segment in Singha Estate's portfolio and a key driver for the company's sustainable growth moving forward," Ms. Thitima concluded.