'Singha Estate' Reinforces Vision as a Global Holding Company

Confident in Continuous Revenue Growth in 2020, Expanding Existing Businesses While Venturing into New Ones

Reveals 5-Year Plan with a Budget of Over 68 Billion Baht to Drive Sustainable Business Growth

 

Singha Estate reinforces its vision as a Global Holding Company by unveiling a 5-Year Business Plan (2020-2024) with an investment budget of over 68 billion baht to expand its investment base in all dimensions, strengthen financial stability, and venture into new businesses aimed at sustainable growth. Confident that in 2020, all business segments will continue to grow, including transfer and new sales in residential projects, rental income from new office buildings, and full-year revenue recognition from the hotel in the CROSSROADS Maldives project.

 

Mr. Narit Chayaklin, CEO of Singha Estate Public Company Limited revealed that for the business direction of the Singha Estate group over the next 5 years (2020-2024), the company plans to invest continuously, preparing a budget of 68 billion baht to create long-term growth. The 5-year plan covers investments in 30 residential projects valued at a total of 37.5 billion baht, 4 commercial or office rental projects valued at 8.5 billion baht, and investments in hotel businesses totaling 22 billion baht. Factors influencing investment decisions include quality assets located in prime areas with long-term growth potential.

For the residential business, which includes Singha Estate and Nirvana Daii Public Company Limited, a subsidiary, this year plans to launch 6 new projects worth 10 billion baht, along with introducing 5 new brands in both high-rise and low-rise segments to expand the market from previously targeting only the upper segment to include the middle to upper segments that are experiencing good growth.

“The residential development business can be considered as still in the phase of reaping the benefits from previous investments. Currently, we have a backlog to transfer in 2020 of over 6 billion baht, and we plan to launch 6 new projects with a sales target of over 8 billion baht. Some of these will be sold and transferred this year, which will definitely increase revenue for the residential business in 2020,” Mr. Narit stated.

In the commercial or office rental business, the company recently acquired the Metropolis building with an investment of 1.725 billion baht, which is an office building for rent near the BTS station Phong. It has a rental area of 14,000 square meters. Together with the growth of the rental rate of Singha Complex, this will be a key factor in increasing revenue for this business segment in 2020. The company has 3 office buildings: Sun Towers, Singha Complex, and Metropolis, all of which have a rental rate of over 90%. Within 5 years, the company aims to have 300,000 square meters of commercial space, up from the current 140,000 square meters, with a budget of 8.5 billion baht for acquiring 4 more projects, including the development of the S Oasis project, a new office building currently under construction and expected to be completed by 2021.

For the hotel business, according to the 2025 business plan, the goal is to double the business or grow by 15% per year by increasing the number of hotels from 39 to 80 under the company S Hotel and Resort Public Company Limited (SHR), which was listed on the stock exchange on November 12, 2019. Last year, the mega project CROSSROADS in the Maldives was launched, which is the largest integrated resort and tourism project worth over 10 billion baht, consisting of The Marina @ CROSSROADS with a luxury yacht marina, along with a total area of shops, famous restaurants, cultural learning centers, and marine learning centers on 11,000 square meters, and two hotels: Hard Rock Hotel Maldives and SAii Lagoon Maldives, Curio Collection by Hilton. In 2020, the project will recognize full-year revenue, targeting project revenue of over 2 billion baht, which will significantly contribute to the rapid growth of SHR.

Additionally, SHR has prepared a 5-year investment budget of over 22 billion baht to acquire more hotels and resorts, focusing on investments in key tourist destinations such as the Asia-Pacific and Mediterranean regions. SHR has a management platform that can support various business expansions to achieve rapid international growth.

“The year 2020 is a significant step for Singha Estate to build on growth from its business base as a fully-fledged Global Holding Company. In addition to investing in sustainable business expansion in all dimensions, the company will begin developing new businesses in renewable energy, which will commence operations in 2020 to meet global market demands and create environmental sustainability,” Mr. Narit added.

Moreover, this year marks a year where Singha Estate aims to build its brand in all dimensions to become a premium and trustworthy brand under the campaign “Singha Estate Enriching Life.” This includes developing best-in-class quality projects and creating memorable experiences, as well as being a model company for sustainable development, which is a philosophy inherited from its parent company, Boon Rawd Brewery.

Regarding sustainability strategies, Singha Estate aims to be a member of the Dow Jones Sustainability Indices (DJSI) in the long term. The company has adopted the UN Sustainable Development Goals as targets for various business operations, such as SDG13 Climate Action, which aims to reduce climate change by lowering carbon emissions in business processes, from energy-efficient design, standard construction, and managing environmentally friendly buildings or hotels. Additionally, it aims to deliver projects that enhance quality of life and create sustainable value for society. In 2020, the company plans to open a nature learning center in Koh Samui, organize beach clean-up runs, youth leadership camps, and activities that foster collaboration in conservation with employees and all stakeholders.

Overall, the business direction in 2020 will see the company continue to grow, with the residential business segment transferring THE ESSE SUKHUMVIT 36 and other projects from both Singha Estate and Nirvana Daii Public Company Limited, with a total backlog of over 6 billion baht and launching 6 new projects. The commercial business segment will see increased rental income from Singha Complex and Metropolis office buildings, while the hotel business segment will experience revenue growth from full-year revenue recognition from two hotels in the CROSSROADS project, valued at over 2 billion baht. In terms of investments, the company also plans to generate recurring income from office buildings and hotels, preparing a budget for acquisitions (M&A) in 2020 of over 5 billion baht, along with starting the Renewable Energy business in 2020, marking a path for sustainable growth as a true Global Holding Company.