Just real estate is not enough. "Singha Estate" sounds the battle drum to venture into new waters, advancing the organization with "4 business groups" aiming for revenue to soar 3 times in 3 years.

Highlights

  • Currently, commercial real estate projects, hotels, resorts, and residential projects are the 3 main business groups generating over 96% of Singha Estate's revenue.
  • Singha Estate has announced its entry into a new business group, which will include industrial estate projects, electricity generation businesses, engineering services, and other related businesses to diversify the company's portfolio.
  • Under these 4 business groups, they aim to increase the company's revenue growth by up to 3 times within the next 3 years, looking towards synergy to create new business opportunities in the future, and also planning to expand operations through new collaborations both domestically and internationally.

 

It is well known that "Singha Estate" or Singha Estate Public Company Limited is a Thai real estate development and investment company, recognized for developing "commercial real estate projects" with prominent office buildings in key locations throughout Bangkok, as well as "hotels, resorts," and "residential projects" both horizontal and vertical.

 

If we look into the details of Singha Estate, we will find that in 2020, they generated revenue from all 3 groups as follows (with other sources contributing 4%):

  1. Commercial real estate business - Office and retail space totaling 140,000 square meters > contributed 15% to the company's revenue.
  2. Hotel and resort business - 39 locations in 5 countries, totaling 4,647 rooms > contributed 24% to the company's revenue.
  3. Residential project business - 23 projects, including both horizontal housing and condominiums (high-rise) such as the Santiburi brand, The ESSE, and others > contributed 57% to the company's revenue.

However, they do not seem to be complacent with the competitive market situation, as well as external factors such as the COVID-19 pandemic, which has made it difficult to assess the situation and its impacts clearly as before.

 

Singha Complex office building at the corner of Asoke Road

 

Therefore, on March 1, 2021, Singha Estate announced its important business plan to venture into new businesses to strengthen and diversify its portfolio, moving towards sustainable and significant revenue and profit growth while mitigating operational risks that may arise in the future.

The new business group that Singha Estate is looking at includes industrial estate projects, electricity generation businesses, engineering services, and other related businesses.

With the integration of these 4 business groups, Singha Estate has set measurable targets, aiming to increase the company's revenue by 3 times within the next 3 years, or to achieve approximately 20 billion baht per year. Moreover, the introduction of new business groups is expected to increase the company's asset value from 65 billion baht at the end of 2020 to 80 billion baht by the end of 2023.

 

Chutinan Phromphakdee, Chairman of Singha Estate Public Company Limited, revealed the company's plans to venture into new waters, stating, "This year marks another significant step as we enter the next phase of Singha Estate's business development. We will move forward into related and new creative businesses that will enhance and strengthen our existing businesses, promoting synergy to position Singha Estate as one of the leading businesses in Thailand, integrating real estate, electricity generation, and related services to achieve significant growth and deliver good returns."

"In the past, we have focused on transitioning the company from a family-run asset management and real estate business to a publicly traded company with professional management, possessing diverse assets in real estate across various regions.

"Looking ahead, we are confident in Thailand's future as the business base for Singha Estate. At the same time, we are also seeking opportunities to create new growth on a global scale."

 

On the other hand, Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited, stated that Singha Estate will continue to integrate and elevate its various businesses to become stronger, combining with existing businesses such as hotels, residential projects, and commercial real estate to create competitive advantages and the potential to seize significant business opportunities.

 

Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited

"The COVID-19 pandemic has confirmed the company's correct decision to structure the business into 4 interconnected groups, enabling the company to generate consistent returns amidst an unpredictable business environment both domestically and globally."

"We hope that from now on, the fourth business group will be a new business that complements and builds upon the core real estate business, generating substantial revenue for the company. The approach of advancing the 4 business groups of Singha Estate will provide us with distinct advantages and increase opportunities for new related business ventures. Additionally, it will enhance our competitiveness through mutual support among different business groups, resource sharing, and business integration, leading to greater stability as the affiliated businesses have different business cycles and risk profiles, thus increasing the ability to generate regular and consistent income."

 

The ESSE Sukhumvit 36 condominium project

Moreover, Singha Estate is also studying new concepts and methods of operation to be applied in managing the company's hotel and resort businesses, enhancing the business's resilience to thrive in all situations. They also aim to seek collaborations both domestically and globally to build greater expertise, which will strengthen competitiveness and help expand the business base internationally in the future.

All of this reflects Singha Estate's commitment to aggressively pursue new business groups to create strength, opportunities, and sustainable growth for the company, showcasing the company's ambition to continue advancing the "important pieces of the puzzle" in their business portfolio that has never ceased to evolve over time.