Singha Estate has announced its business plan for the second half of 2020 to cope with the COVID-19 crisis while maintaining a stable financial position. The company will continue to invest according to its original 5-year plan with a budget of 68 billion baht, focusing on expanding into potential markets in the New Living and Working Cluster in high-growth areas and developing new business models to meet changing consumer demands and investment trends in the New Normal era. The company is preparing to pursue Smart M&A to enhance its portfolio with quality assets and sustainable growth alongside society and the environment.

Mr. Narit Cheyklin, CEO of Singha Estate Public Company Limited or S, revealed the direction of Singha Estate's business operations for the second half of the year, stating that the overall real estate market has been affected by the COVID-19 crisis. However, Singha Estate will continue to invest according to its original business plan for the 5-year period (2020-2024) with an investment budget of 68 billion baht, focusing on sustainable growth. Nevertheless, to align with the current changing situation, the company has adjusted its total revenue target for 2020 down by approximately 50%, anticipating that the overall business will recover in the fourth quarter.


“We sincerely hope that the COVID-19 crisis will pass quickly, and after the crisis, we see new business and investment opportunities that are interesting along with the economic recovery. We will consider investments based on appropriateness and have strict criteria for investment decisions to acquire quality assets with future value appreciation potential. We will continue to expand our three core businesses as planned, with the residential and office sectors expanding into new locations, creating quality projects that respond to the New Normal with the New Living and Working Cluster business model. For the hotel business, we will increase revenue while seeking suitable partners through Smart M&A and an Asset Light Model, which will not only help the business recover quickly but also assist operators in overcoming the crisis together. The operations of Singha Estate will continue to be based on the philosophy of creating value for life, aiming for sustainable growth alongside creating a quality society and caring for the environment,” Mr. Narit stated.


During the COVID-19 crisis, the company has managed its finances effectively, maintaining a low net interest-bearing debt to equity ratio of 0.86 times. This was achieved through the listing of S Hotel and Resort Public Company Limited or SHR on the Stock Exchange of Thailand and the sale of a 30-year lease of the Sun Towers office building to the SPRIME REIT, enabling the company to be ready and able to invest in business expansion as planned. Additionally, the company has plans to strengthen its financial position to support future opportunities by bringing the Metropolis office building and Sun Plaza retail space into the REIT and issuing bonds in the future.

Sustainable Growth with Investment According to the 5-Year Plan
Singha Estate aims for sustainable growth by investing according to its original 5-year plan with a budget of 68 billion baht. In the residential business, the company has only 1-2 billion baht worth of inventory remaining, which is manageable, allowing it to implement sales policies that help maintain project profit margins. In the second half of the year, the project THE ESSE Sukhumvit 36, valued at over 6.5 billion baht with approximately 60% sales, will be completed and ownership transfer can begin in the third quarter. Additionally, the company expects to launch 3-4 new projects in the second half of the year, focusing on horizontal projects, while maintaining its original target of 5-7 projects per year in the following years.

For the office and retail space business, the company aims to expand office space by 300,000 square meters over the next 5 years. During the COVID-19 period, this business has not been significantly affected, and the company has improved hygiene quality by installing Touchless Solutions and UV systems in the air conditioning to meet New Normal standards for leading tenant companies, while also seeking new tenants in growing sectors such as E-commerce, Technology, and Consumer Products.

In the hotel business, during the second half of this year and into early next year, the focus will be on stimulating sales from domestic tourists and neighboring countries (Inter-region). The company also plans to invest in the Asia-Pacific region, which has high potential, aiming to expand its business from 39 hotels to 80 hotels as per the 5-year target.
Mr. Narit added that in addition to investing according to the planned strategy, the company is also focused on expanding the development of residential and office projects into areas around the city and developing new business models under the concept of “New Living and Working” to accommodate changing customer demands in the future.

Singha Estate sees opportunities to develop residential projects that will expand from the city to new locations in line with the expansion of public transport systems and road networks. These will be horizontal projects in a mixed-use format, including single houses, townhomes, retail spaces, and wellness residential projects, which will be new opportunities.

For the office building business, the company believes that there will still be demand for office space in various formats in the future. The company is ready to offer new office space solutions, “Workspace Solutions,” in various formats and locations, including large buildings, medium-sized buildings, horizontal offices, and co-working spaces in new locations, emphasizing connectivity through IT systems for clients everywhere. The company will open a new concept Workspace at Sun Towers by the end of this year to accommodate tenants looking to optimize their workspaces.

SHR Builds a Quality Portfolio with Smart M&A and Asset Light Model
In expanding its hotel business according to the long-term goals set, the company believes that tourism will gradually recover in the fourth quarter of this year, starting from Thailand and countries with good healthcare systems and effective control of infection rates. During the crisis, although the hotel business has been significantly affected, clear business opportunities have also emerged. The company continues to implement its Smart M&A strategy, focusing on investing in hotels located in popular tourist destinations, enhancing asset potential, and recycling capital through selling hotels into REITs or to buyers who provide good value, as well as implementing the Asset Light Model to generate additional income from managing hotels through Home Grown Brands, which has made significant progress and is expected to start seriously in this year and continue into the next. Currently, SHR has developed the SAii brand as the first hotel brand of the company.

“SHR aims to double the number of hotels from the current 39 worldwide to 80 within 5 years, focusing on the upper upscale segment of tourists and providing unique and creative vacation experiences for customers. Additionally, SHR is developing a new brand that will be launched soon, which is an Asset Light Model business that will help generate more recurring revenue and enhance portfolio growth without requiring high investment,” said Mr. Dirk Andre Leena Kueber, CEO of S Hotel and Resort Public Company Limited.

Reinforcing its Position as a Global Holding Company, Advancing Business to Address Future Needs while Creating Value for Life
Singha Estate continues to follow its strategy to become a Global Holding Company as planned for 2020. Furthermore, the company sees opportunities to invest in new businesses, specifically in renewable energy, with its first project to start in the Maldives at a capacity of 5 megawatts, marking the company's entry into the environmental conservation business.

To build brand confidence as the Most Trusted Brand, in addition to developing projects to the highest quality, we also leverage expertise from sustainability strategies established since the company's inception, which has been recognized by society, particularly in environmental care and promoting quality of life, and apply it to create a business edge, as well as elevate the service standards of all business groups to meet international hygiene and environmental conservation standards.

“What is important for Singha Estate is to take care of all stakeholders, assist partners in building a quality Thai society, and collaborate with the government and other companies to combat the COVID-19 crisis. Importantly, we support communities in every location where our business operates to help the Thai people emerge from the COVID-19 crisis stronger and more stable,” Mr. Narit concluded.