Siamese Asset Public Company Limited (SA), a comprehensive real estate developer, has revealed its strategy for 2020, aiming to aggressively expand its portfolio of income-generating properties (Recurring Income). The company is focusing on three main strategies to increase the proportion of revenue from rental businesses, shifting from a focus on residential projects for sale to showcasing a portfolio of real estate projects currently available for sale, with a total project value exceeding 40 billion baht.

            Mr. Kachornsak Singserm, Executive Director and CEO of Siamese Asset Public Company Limited (SA), stated that the company is a comprehensive real estate developer under the concept of 'Asset of Life, generating profits for every aspect of life.' The company develops both high-rise and low-rise projects to cater to customers at all levels, focusing on projects in prime locations in the city center, Central Business District (CBD), and new CBD areas. Each project is differentiated by incorporating innovations and amenities to enhance the quality of living in a good environment, meeting the needs of customers looking to buy for residence and long-term investment. As a result, the company's real estate business revenue has grown at an average of 62.2% over the past three years, with profits growing by more than 100% on average over the same period. In 2019, the company reported a net profit attributable to shareholders of 512 million baht.

With continuous growth in performance, the company plans to operate in 2020 by diversifying its real estate development lines further and aims to be a Living’s Value Creator, responding swiftly to customer needs and creating value in every experience of living and investing. This includes expanding into the food and beverage (F&B) sector, providing rental space services such as Cloud Kitchens, and enhancing rental services like Serviced Residences to increase income stability. Additionally, the company will enhance asset value for customers by upgrading regular condominiums to Branded Residences, operating under three main strategies:

1) Development of serviced apartments for rental ownership by customers through designing and developing apartments suitable for rental (Serviced Residence) to sell to investors seeking rental returns. The company plans to develop such apartments in nearly all projects, including The Collection, Siamese Exclusive 42, Siamese Exclusive Ratchada, Siamese Rama 9, Siamese Sukhumvit 87, and Siamese Sukhumvit 48, which will offer amenities and services to tenants akin to hotel stays.

2) Development of rental buildings owned by the company. The company plans to hold ownership of projects located in high-potential areas, such as condominiums that can be repurposed as hotels or Serviced Residences, and commercial rental spaces to increase the proportion of recurring income from rental businesses. Development plans include projects like The Collection, Siamese Exclusive 42, Siamese Exclusive Ratchada, Siamese Rama 9, Siamese Sukhumvit 48, and Siamese Sukhumvit 87, which are mixed-use real estate projects.

3) Renovation of old buildings for sale or rent. The company has a policy to invest in buildings located in CBD areas such as Silom, Sukhumvit, or potential tourist cities to develop and change the usage type of buildings to create value for projects, generating income from sales or rentals. Recently, the company acquired land and a building under construction in Sukhumvit 39 to develop into a hotel or Serviced Residence.

“The company's future direction aims to expand the line of real estate businesses with increased rental income, shifting from the current focus on residential projects for sale. As of December 31, 2019, there are 13 real estate projects available for sale, with a total project value exceeding 40 billion baht, including the Siamese Rama 9 (Mixed-Use) and Siamese Exclusive 31 projects,” said Mr. Kachornsak.

The Executive Director and CEO of Siamese Asset Public Company Limited further stated that with this strategy, the company is preparing to expand its real estate development line under the new 'Branded Residence' model to increase rental income and add value to condominium projects. The company will collaborate with leading hotel chains to provide comprehensive services, ensuring a perfect living experience in all aspects, including building management, common areas, and all units in the project, while offering luxury service standards akin to those of hotels to enhance the potential for real estate project development for the company.