10 March 2020 – Charn Issara reports a strong performance for 2019 despite economic factors and government measures impacting the market. The company highlighted that the sale of investment units in Sripanwha, valued at over 264 million baht, contributed to revenue growth in Q4 2019. Moving forward with the 2020 business development plan, the company is launching new projects in Bangkok and other provinces while continuing to develop existing projects to meet the ongoing demand in the housing market. They aim to create differentiation and develop products that align more closely with customer needs.

            Mr. Songkran Issara, CEO and Managing Director of Charn Issara Development Public Company Limited, shared insights on the overall business performance in 2019, describing it as a challenging year for the real estate sector, particularly in sales and marketing. Economic slowdowns and various government measures led to a delay in consumer purchasing decisions. However, the luxury segment still showed strong demand for housing that meets lifestyle needs.

            Despite these negative factors, Charn Issara believes that the impacts are industry-wide. The company has adapted its strategies in product offerings, sales, marketing, and promotions to counteract the challenges faced in 2019. Nevertheless, the company achieved good overall performance thanks to the sale of investments in the Sripanwha Trust, valued at over 264 million baht.

            For the business direction in 2020, the company is moving forward with new projects in Bangkok and other provinces, while continuously developing existing projects. This includes preparing to bring Baba Beach Club Hua Hin, the main hotel, and Baba Beach Club Phuket into the Sripanwha Real Estate Investment Trust (REIT) by the end of 2020. Previously, in late 2018, the company included 18 hotel rooms from Baba Beach Club Hua Hin into the SRIPANWA Trust, valued at 530 million baht, which will help grow the trust from 4 billion baht to 6 billion baht.

            Regarding the progress of the hotel expansion, which includes both Phuket and Hua Hin, the expansion of the Sripanwha Phuket Convention Hall, accommodating 400 people, along with 24 pool suite rooms, is valued at 1.2 billion baht. This facility will host events, conferences, seminars, weddings, and product launches, with construction set to begin in early 2020, designed by Habita Co., Ltd., and has already passed the Environmental Impact Assessment (EIA).

            The construction is expected to take two years to complete, with plans to bring it into the SRIPANWA Trust afterward. Additionally, last year, Sripanwha constructed four one-bedroom pool villas (X25) with a usable area of 150 square meters each and over 1,000 square meters of common area, including a swimming pool and pool bar, valued at 200 million baht. Construction was completed and opened for service in late December.

            Furthermore, the Baba Beach Club Phuket currently has 16 beachfront hotel units that have been completed and operational for over a year. It is expected to be included in the SRIPANWA Trust by the end of 2020, valued at approximately 500 million baht. Additionally, the construction of 18 two-bedroom pool villas has been completed since early 2019, with some units sold and managed as hotel pool villas to support future sales. Beach Front Villas for sale, totaling four units, have also been completed, with some units sold.

            “Overall, the tourism business in Phuket has shown signs of decline since mid-2018 due to various factors, including accidents from boat incidents and visa exemption measures that have affected tourist numbers, particularly from China. Additionally, the strengthening of the Thai baht compared to neighboring currencies has also impacted travel decisions, leading tourists to choose other destinations. Despite these challenges, Sripanwha has adapted its tourism promotion strategies, resulting in an increase in Thai tourists staying at Sripanwha, compensating for the decline in Chinese tourists. Marketing efforts have also been expanded to the USA, UK, Japan, and Hong Kong. However, in 2020, it is believed that the Chinese tourist market will gradually recover, especially after the government approved measures to exempt visas for Chinese and Indian tourists traveling to Thailand, allowing them to stay for 15 days from November 1, 2019, to October 31, 2020, or for one year. This includes extending the visa exemption fee for VoA at 2,000 baht per person for another year until October 31, 2020, for 19 countries, excluding China and India, which already have visa exemptions. This is expected to boost Chinese tourism to Thailand by no less than 11 million people. Both visa measures are believed to help maintain the Chinese tourist market in Thailand and expand the new market in India significantly,” Mr. Songkran stated.

            Mr. Songkran further discussed the progress of the Baba Beach Club Hua Hin expansion, noting that the main hotel, a 12-story building with 50 rooms, will include banquet halls, meeting rooms, and a spa to accommodate tourists. The project is valued at 1.5 billion baht and construction began in 2018, expected to be completed and operational by the end of 2020, with plans to bring it into the SRIPANWA Trust around the same time, valued at 1.5 billion baht.

            “By the end of this year, we intend to bring the Baba Beach Club Hua Hin main hotel and Baba Beach Club Phuket, valued at 1.5 billion baht and 500 million baht respectively, into the SRIPANWA Trust by the end of 2020, totaling over 2 billion baht. Once included, the fund will exceed 6 billion baht,” Mr. Songkran added.

            For new project launches in Bangkok and other provinces, in late 2019, the company introduced VIP Day to unveil the luxury condominium “The Issara Sathorn,” valued at over 2.4 billion baht, located in the Sathorn area. The concept is “Live Free... to the fullest in every aspect,” emphasizing a living experience that feels like home, blending urban and natural elements harmoniously with views of the Chao Phraya River and Bang Kachao, with prices starting at 4.88 million baht. The project received a positive response from customers and will have a pre-sale event with model rooms available for viewing in February.

            In 2019, in addition to purchasing land on Chanthaburi Road, the company also acquired beachfront land in Khao Takiab, Hua Hin, to develop a condominium project, expected to start sales in mid-2020.

            Mr. Dithwat Issara, Managing Director of Ruam Issara Co., Ltd., reported on the overall business performance under the Tiwa Sea Estate in Cha-am-Hua Hin, indicating continuous growth in projects such as Tiwa Sea House Aqua Marine and Baba Beach Club Residence Phase 1, which has sold out 11 units. The Tiwa Sea House Blue Sapphire project has achieved 90% sales, while the Blue Condo project has reached 70% sales. The “Baba Beach Club Residence” Phase 2, featuring 7 luxury pool villas starting at 33.9 million baht, is designed in a neo-colonial style by Habita Co., Ltd. and is currently over 50% developed, with model homes available for viewing in April 2020 and expected to be fully constructed by mid-2020.

            The Hua Hin area continues to show growth potential, driven by both Thai and foreign tourist arrivals, supported by the marketing plans of the Tourism Authority of Thailand (TAT) in Prachuap Khiri Khan province. The company is confident that TAT's marketing plans will enhance the overall tourism in Cha-am-Hua Hin and strengthen the real estate market, particularly villas in this tourist area, increasing revenue from tourist spending through travel incentives. This marketing plan aims to promote tourism information, create marketing communication, and boost inter-regional tourist arrivals in Prachuap Khiri Khan, as well as increase weekday travel.

            “With our experience in real estate development in Bangkok and other provinces, along with analyzing the competitive landscape of the real estate market, including single houses, condominiums, and hotels, we are confident that the Baba Beach Club Residence Phase 2 will meet the lifestyle needs of customers seeking a peaceful, private retreat surrounded by nature, as well as those looking for long-term investment opportunities in real estate with rental returns. Our management team from Sripanwha will assist in managing rental investments for clients,” Mr. Dithwat stated.

            Additionally, in late 2019, the company collaborated with Shell Thailand to open the Shell Hua Hin One gas station, located in the Tiwa Sea Estate at Km 196 on Phetkasem Road (Boh Khem), to serve as a rest stop and new landmark for Cha-am-Hua Hin for tourists and travelers. The station also offers car wash services and EV chargers for new electric vehicles.

            “This gas station features a unique design to fully accommodate customers. To create interest and establish a landmark for passersby, we invited renowned artist P7, known for his Art Painting, to create Wall Art within the Hua Hin One project, featuring designs symbolizing good luck, making it an attractive photo spot and check-in location,” Mr. Dithwat added.

            Nevertheless, this year, the Tiwa Sea Estate is preparing to create a significant phenomenon to raise awareness and showcase a truly mixed-use vision for customers and everyone who visits to relax and enjoy the various services of the project. This major transformation is currently in preparation and is expected to be officially launched in the second quarter of this year.

Thank you for the information from charnissara.com