“Siamese Asset Public Company Limited” (SA), being a fully integrated real estate developer, revealed their 2020 strategies, particularly the initiative to increase their real estate portfolio that produces recurring income. The Company is set to initiate three main strategies to increase the income ratio from rental business from the previous strategy plan of developing mainly residential projects for sale, while also announcing their 40,000-million-baht worth of real estate projects currently on offer for sale.
Mr. Kajonsit Singsansern, Chief Executive Officer (CEO) of Siamese Asset Public Company Limited (SA), revealed that the Company is an integrated real estate developer build on the concept “Asset of Life” applied to both horizontal and vertical developments for all customer segments with the focus on high potential locations in city centers – CBD and New CBD, while incorporating distinctive features into the projects through innovations and additional amenities to project unique selling points and raise the level of the quality of life in the best possible environment to fulfill the needs of the customers who have the desire to have their own homes and for long-term investment. This strategy has led to the realization of revenue from the growth of the real estate business at the accumulated average rate of 62.2 percent over the past three years, and an accumulated profit growth of over 100 percent in the past three years. In 2019, the Company achieved a net profit of 512 million baht excluding minority interests.
With such a continuous growth in performance, the Company has devised their 2020 business plan by expanding the development of real estate projects to become more diversified along with the determination to become the “Living’s Value Creator”, in other words the real estate developer who quickly responds to their customers’ needs and creates value in every living and investing experience. This is being done by adding food & beverage business and rental space services such as cloud kitchen, rental service business such as Serviced Residence, that will help to create more secured income flow and increase value to their customers’ assets through the improvement of the regular after-sales services and for condominiums to rebrand and upgrade to become the “Branded Residence” under the three new main strategies, as follow:
- The development of the units that remain the properties of the customers along with rental services – Designing and developing the units to be suitable for rental as serviced residences for sales to customers who are investors seeking returns from rentals. Plans are in place to develop and include such units in almost all projects, namely, The Collection, Siamese Exclusive 42, Siamese Exclusive Ratchada, Siamese Rama 9, Siamese Sukhumvit 87 and Siamese Sukhumvit 48, where hotel-like amenities will be made available to renters.
- Development of buildings for rent that will remain the properties of the Company – The Company plans to hold ownership in projects located in high potential locations, such as condominiums whose functionality can be changed into hotels or serviced residences, and commercial spaces for rent in order to increase the proportion of regular income from rental business with the plan to develop such buildings in The Collection, Siamese Exclusive 42, Siamese Exclusive Ratchada, Siamese Rama 9, Siamese Sukhumvit 48 and Siamese Sukhumvit 87 projects – which are considered mixed-use real estate projects.
- Develop and renovate old buildings for sale or for rent – The Company has a policy to invest in buildings located in prime CBD areas such as Silom and Sukhumvit and at high potential tourist destinations to develop and modify their functionality to add more value to the projects to increase income from sale or rent. Most recently, the Company have bought the land and the building under construction on Sukhumvit Soi 39 to develop into either a hotel or serviced residence.
“The Company’s direction in the future is to increase the scope of the real estate business to achieve more recurring income from increased rental portfolio from the present situation where the majority of the income is realized from the development of residential projects for sales. Currently (as of December 31, 2019), the real estate projects available for sale totals 13 projects together worth more than 40,000 million baht, projects such as the Siamese Rama 9 (mixed-use) and Siamese Exclusive 31, Mr. Kajonsit said.
The Executive Director & Chief Executive Officer of Siamese Asset Plc. added that, because of such combined strategies, the Company has prepared to increase the scope of real estate project developments under the new model called “Branded Residence” to increase the income portfolio from rentals and to create added value for condominium projects, by partnering with a leading hotel chain to help provide integrated services through complete multifaceted living, including project management, common area and all units in the project while offering luxury services of international hotel standard in order to promote the development potential of real estate projects for the Company.