REAL ASSET is diving into the real estate market in 2023, launching 4 projects worth over 5.9 billion baht, including both high-rise and low-rise developments. The company is set to unveil new brands "ARLO LASALLE 17" and "VIVALDI Bangna" while adjusting its growth strategy to accelerate expansion through M&A and recurring income projects to enhance cash flow. It is expected that by 2024, the company will achieve a record high revenue of 7 billion baht. Additionally, the company is enhancing its business strategy by partnering with the major Japanese firm "SOTETSU" for investments over the next 3-5 years.

Mr. Bodinthorn Jeungroongruangkit, CEO of REAL ASSET Development Co., Ltd., a property development company with over 20 projects including single houses, twin houses, townhomes, home offices, and condominiums, revealed the company's operational plans for 2023. The company plans to launch 4 new projects with a total value of over 5.9 billion baht, targeting the mid to upper market segments through both self-developed projects and M&A. The company is also looking for opportunities to expand into hotel and hospitality projects, as well as retail and commercial real estate to enhance cash flow and ensure continuous growth.

For the low-rise projects, the company plans to launch 2 projects in the second half of the year:

VIVALDI Bangna is located near Wat Klong Palad Prian, just 1.8 kilometers from Bangna Road. It will be developed as a new brand of single houses aimed at the Hi-End segment, with prices starting from 10-20 million baht and a project value of over 1.3 billion baht.

VIRANYA Rangsit – Wongwaen is a single house project located in the Wongwaen - Lam Luk Ka Ring Road area, with prices starting at 3.XX million baht and a project value of over 1.25 billion baht.

For the condominium segment, the company plans to launch 2 projects:

THE STAGE Made by Me Ratchada - Huaikhwang will be developed as a 31-story high-rise condominium in the Ratchada - Huai Khwang area, with a project value of approximately 2.13 billion baht and prices starting at 2.89 million baht. The first online booking round is scheduled for April 3.

The new brand under the nameARLO LASALLE 17 (formerly The Excel Lasalle 17) is a low-rise condominium consisting of 4 buildings on over 4 rai of land, with 581 residential units and a project value of 1.24 billion baht. This project is part of the company's M&A strategy, helping to reduce development time and generate quicker returns by acquiring land and existing structures with potential for further development. Construction is currently underway, expected to be completed by the end of this year, with ownership transfer anticipated in early 2024, and sales set to begin in Q3 2023.

Additionally, the company has partnered with SOTETSU Real Estate, part of the Sotetsu Group, which operates in railways, buses, real estate, supermarkets, and hotels, primarily in Yokohama, Japan, with around 70 years of experience in residential development. They have jointly invested in projects such as A Space Mega, THE STAGE Mindscape Ratchada – Huaikhwang, and VIVALDI Bangna, with plans to develop new projects together in the future. The company is confident that SOTETSU's extensive experience will elevate residential standards through design, functionality, innovation, and sustainability.

The company believes that the housing market continues to grow and that consumer demand remains strong, as housing is one of the four essential factors for living. However, it also acknowledges that the real estate sector faces negative factors that require careful policy decisions, such as rising interest rates, increasing land costs, and rising construction material prices, all of which impact the business both directly and indirectly. Nevertheless, positive factors are emerging that will benefit the overall economy, various businesses, and the tourism sector in Thailand, which is expected to rebound with the reopening of the country and the return of tourists.

"The company aims to develop projects worth over 14 billion baht within the next 3 years (2023-2025) to balance revenue between transfer income and recurring income. The goal is to generate recurring income from the development of 3 projects worth a total of 1.7 billion baht within 3 years. In 2022, the company achieved sales of 2.288 billion baht and aims for 3.47 billion baht in 2023, representing over 50% growth from the previous year. The company plans to adopt a proactive policy for developing both low-rise and high-rise projects, with continuous sales from new and ongoing projects expected to lead to significant sales and revenue growth. In the next 3 years (2023-2025), the company plans to develop projects with a sales target of 4 billion baht per year, with revenue expected to become clearer in 2024, projected to reach 7 billion baht, marking a new high for the company. The company has a backlog of approximately 4 billion baht to support future revenue recognition and anticipates adding another 2 billion baht to the backlog this year and next to support its transfer plans," Mr. Bodinthorn concluded.