M.K. Real Estate Development Public Company Limited (MK) reaffirms its commitment to its 5-year business plan, focusing on adapting its operations to cope with the impacts of the COVID-19 pandemic. The company has recently leveraged online technology to meet the current consumer lifestyle demands. In the first quarter of 2020, the real estate sales business achieved over 500 million baht in sales, while pre-approved reservations and backlog increased by 80%. The rental and service business continues to generate steady income, with a 30% increase in revenue by the end of 2019, and plans to sell assets worth over 2 billion baht to enhance financial liquidity.

Mr. Vorasit Pokachaiyapat, Chief Executive Officer of M.K. Real Estate Development Public Company Limited, stated that the COVID-19 situation has affected all sectors, but M.K. has not been significantly impacted due to its preparedness and adaptability to changing circumstances. The company has adjusted its operations, including utilizing 360-degree Virtual Tour technology to allow customers to view properties remotely and make purchases through Line. Additionally, over 70% of the company's customers are homebuyers without mortgage burdens, and the company's products are priced between 3-5 million baht, minimizing the impact of the pandemic. Various promotions have also been introduced to facilitate customer purchasing decisions, enabling continuous sales.

“In the first quarter of this year, the company generated over 500 million baht in sales, which accounts for 35% of the annual target for 2020 when including pre-approved reservations and backlog. In the past two months, the company has seen weekly pre-approved reservations and backlog of approximately 90 million baht, an increase of 80%,” he added.

Mr. Vorasit further discussed the overall rental and service business, stating, “The strength of our 5-year business plan, aimed at balancing revenue for stability, indicates that we are on the right path. Although the overall residential real estate sales have slowed due to various factors, our business plan allows us to maintain income from rental and service businesses, helping to balance our revenue streams. In 2019, we generated 530 million baht from rental and service businesses, a 30% increase from 2018.”

The operational plans for M.K. Real Estate Development include rental factories and warehouses, with the Bangkok Free Trade Zone managed by Prospective Development Co., Ltd. performing well, achieving over 90% occupancy in 2019. The Park Court project on Sukhumvit 77, a luxury condominium and apartment rental, maintained an occupancy rate of 80%. Other ventures include the Flora Ville Golf and Country Club, property management services by Yours Property Management Co., Ltd., and a wellness center project expected to launch in late 2020.

Regarding bonds and promissory notes maturing this year, the company has already prepared financial plans to enhance liquidity. Last year, the company raised 1.565 billion baht through a 3-year and 11-month bond issuance and sold non-development assets worth over 2.6 billion baht in the past two years. Additionally, there are over 2.5 billion baht in unencumbered assets, providing flexibility for liquidity enhancement. This year, the company plans to sell over 130,000 square meters of rental factories and warehouses valued at over 2 billion baht into a trust fund, which has been approved by the SEC and is expected to be offered to the public in Q3.

“This year is challenging due to various factors, including the COVID-19 pandemic and economic conditions. However, we continue to pursue our policy of balancing revenue from real estate sales and consistent income from rental and service businesses while seeking opportunities to develop potential projects. Our 5-year business plan aims to achieve a profit ratio of 50/50 by 2021 to enhance the company's stability,” Mr. Vorasit concluded.