Villa Kunlaya Public Company Limited ("KUN") has announced its strategy for the Year of the Golden Rabbit, launching two major real estate projects under the new brand name "Kunlaya Navara" in the Rama 2 and Rangsit-Klong 2 areas, along with another project "Kunlaya Perra" in Bang Bua Thong, with a total value exceeding 11.6 billion baht. This positions "KUN" for success in developing residential projects under "Villa Kunlaya" across all four directions around Bangkok and its suburbs, in line with their planned strategy. They signal that their performance in 2023 is likely to break new records, confidently aiming for revenue to reach 1.3 billion baht after accumulating a backlog of 180 million baht, while sales are expected to approach 1.8 billion baht, supported by an economic recovery and China's reopening, which is expected to restore demand to normal levels and expand their portfolio to attract international customers.

Ms. Prawirat Tevaakson, CEO of Villa Kunlaya Public Company Limited ("KUN"), a developer of horizontal residential projects in suburban areas, revealed that the company's growth trajectory in 2023 is expected to continue from 2022, driven by increasing demand for horizontal housing as purchasing power returns to normal levels following the economic recovery after the country reopened. Recently, the Chinese government officially announced the lifting of travel restrictions, resulting in an influx of Chinese tourists to Thailand, which positively impacts the Thai economy, particularly in tourism and related industries, thereby enhancing consumer purchasing power and positively affecting the real estate market.

"The demand for horizontal housing in suburban areas in 2023 remains high. Developing products that meet customer needs is a priority for 'KUN', as evidenced by the adaptable living spaces that cater to residents' requirements and offer good value for money. This is reflected in the consistently high project visit rates. With a significant number of tourists expected to visit Thailand in 2023, this will positively impact the country's economy and increase consumer purchasing power. We believe we are returning to normalcy, which will encourage financial institutions to focus on lending to customers in sectors previously affected by COVID-19, such as hotels, airlines, and tourism. Currently, Kunlaya has ongoing visits from customers in these sectors, so we believe 2023 will be another golden year for Kunlaya," she stated.

Given these factors, "KUN" has strategized to increase the development of horizontal residential projects to meet ongoing demand. In 2023, "KUN" will drive its business by launching three new projects with a total value exceeding 11.6 billion baht, marking the highest number of new project launches in its history.

This launch will enable "KUN" to successfully develop residential projects under "Villa Kunlaya" across all four directions around Bangkok and its suburbs, as planned. The two new projects set to launch will be located in the northern region of Bangkok under "Kunlaya Navara Rangsit-Klong 2" and "Kunlaya Navara Rama 2" in the southern region of Bangkok. Currently, Kunlaya has projects covering development areas in two directions: the western part of Bangkok (Bang Bua Thong area) and the eastern part (Chachoengsao area).

The three new projects set to launch this year include:

1. Kunlaya Navara Rama 2 is a two-story single-family home project with land sizes starting at 62 square wah, with prices starting at 5.98 million baht and a total project value of 3.7 billion baht. The project is located on Bang Khun Thian-Chai Talay Road, suitable for customers looking for homes in the southern Bangkok area, close to complete amenities such as shopping malls, hospitals, schools, and convenient transportation to inner Bangkok via the Rama 3-Daokhanong-Western Ring Road expressway. The area benefits from good air quality due to its proximity to the sea and mangrove forests. The project had a soft opening last October and has already sold 10 units worth approximately 70 million baht, with revenue expected to start being recognized from February onwards.

2. Kunlaya Navara Rangsit-Klong 2 is a two-story single-family home project with a total project value of 7.3 billion baht, currently in the planning phase for its launch, with a soft opening expected in the second quarter of 2023. Kunlaya views the Rangsit area as having high potential, with a continuous increase in residential expansion and complete amenities such as shopping malls, hospitals, schools, and universities. Additionally, the Rangsit area offers convenient access to Bangkok and is undergoing several development projects, such as the Red Line electric train from Bang Sue to Rangsit and the Green Line from Mo Chit to Kukot, making it a highly sought-after area for residential demand each year. The Kunlaya Navara Rangsit-Klong 2 project, set to launch in the second quarter, is expected to receive a positive response from customers looking for homes in northern Bangkok.

3. Kunlaya Perra is a two-story single-family home project with a total project value of 600 million baht, located in the Bang Bua Thong area, where Kunlaya has expertise in project development. Currently under construction, it is expected to have a soft opening in the second quarter of 2023. The project is designed to meet the changing lifestyles of residents, emphasizing the efficient use of space within the home, such as creating workspaces that align with modern work trends or adaptable spaces for online sales activities. Additionally, the Kunlaya Perra project prioritizes nature by creating an environment that harmonizes with the geographical surroundings, allowing customers to experience a tranquil lifestyle in a canal-side home.

With this strategic project launch, "KUN" aims for presales of 1.8 billion baht this year, while revenue is expected to grow to 1.3 billion baht, setting a new record (new high) following the previous year. As of the end of 2022, the company had a backlog of 180 million baht, which will be gradually recognized in the first quarter of 2023.

"The company anticipates recognizing revenue from the Bang Bua Thong project of approximately 1 billion baht in 2023. At the same time, the company plans to close sales on the Kunlaya Jon On 314 project (Chachoengsao area), which currently has about 20 units left for sale, expected to generate around 100 million baht in revenue. Furthermore, the company expects to recognize revenue from all three new projects this year: Kunlaya Navara Rama 2, Kunlaya Navara Rangsit-Klong 2, and Kunlaya Perra, with both new projects in the northern and southern regions expected to receive a good response from consumers. The "Kunlaya Navara" project is anticipated to have a good profit margin, exceeding the company's average gross profit margin, and is believed to add value to "KUN" in 2023, improving profit margins as planned,"

This year, "KUN" plans to expand its market to international customers, starting with marketing through agents in two projects: Kunlaya Navara Rama 2 and Kunlaya Navara Rangsit-Klong 2. The COVID-19 pandemic has changed the housing search behavior of international customers, viewing Thailand as a destination for living, thus seeking horizontal homes that offer comfort for family living and can accommodate longer stays.

However, the company believes that the housing market will increasingly shift towards rental living. Therefore, "KUN" is studying to prepare a plan to adapt to this changing trend, currently developing a 5-year plan (2023-2027) with an initial revenue target of 2 billion baht by 2027 through continuous investment. In this 5-year plan, "KUN" will also explore growth in other businesses through joint ventures (JV) and mergers and acquisitions (M&A). However, this plan is still in the feasibility study phase.