Singha Estate sees vast opportunities in commercial business after the COVID-19 crisis and implements the “Next Normal of Commercial” scheme to complement business in all aspects and support clients in every sector. The “Five Agile Developments” strategy including Tool, Target, Business, Process and Unite will be adopted to increase efficiency and quality of life, develop space for hygiene & flexibility, and focus on innovation development and full-scale cashless society. For the performance in the first half, the company have revised internal management and working closely with all business partners and is confident to move forward in the second half and expects to generate revenue as planned.
Mr. Naris Cheyklin, Chief Executive Officer of Singh Estate Public Company Limited or 'S’, a real estate development company that cares about quality and is committed to create value for life, said that The Next Normal of Commercial, the business competition will increase largely especially in the areas of full service, hygiene care management, flexibility of facilities that can serve various needs of tenants while space can be adjusted and customized.
“The recent COVID-19 outbreak has created a vast impact. Every business will continue to adjust themselves and have long-term plan to respond to changing consumer behavior while the pattern of life in the future will also change. Singha Estate sees opportunities and has developed plans for various situations, the company has created the Five Agile Developments strategy for commercial business, one of its key business units, in a bid to build resilience and improve efficiency as following:
- Agile Tool Development: Building management systems such as integrated hygiene care and other systems to support lifestyle and work convenience (Cloud system management, E-Tax/Revenue, Intelligent parking, Delivery platform and Cashless society) will be developed to support social distancing.
- Agile Target Development: This strategy is to adjust and expand the target market as well as using new tools to serve both big and small clients. Apart from the integrated hygiene care service, it will also have several options to increase work efficiency and build flexibility of work space for various tenants including Flexibility space, Ready to move in office, Co separate working space and Island pod for individual space.
- Agile Business Development: It will develop and always look for additional services and business channels as well as building up resources to primarily provide convenience to customers.
- Agile Process Development: The work process will be improved in order to shorten working times, and improve innovations programs that will enhance efficiency and consistently develop human resources. At the same time, trends and knowledges will be always updated.
- Agile Unite Development: The company will look at business overview, build society of coexistence, and develop supportive tool to help both business owners and tenants, or among tenants, such as virtual market platform. It will also build a good community from inside and surrounding communities as the way to build a quality and sustainable society.
Presently, Singha Estate owns and manages four quality office buildings comprising Suntowers, Singha Complex, The Lighthouse, and Metropolis Building, with combined space of 140,000 square meters and average occupancy rate at 87%. The important move for Singha Estate’s commercial business is to become the provider of Hygienic & Flexibility space with full innovation support in a bid to develop engagement and have sustainable growth.
Mr. Naris added that Singha Estate’s commercial business has now operating business as usual with a slight impact for its retail space, which was closed during lock down for a certain period during the COVID-19 crisis. The company has had measures to help its retail tenants. At Suntowers, most long time tenants whom occupied large rental space, got minimal impact from COVID-19. Therefore, it has slight impact on business. Meanwhile, key tenants at Singha Complex got slight impact as well and also the complex can attract new tenants. However, retail tenants have some impact from lock down and we have several measures to support them during crisis. In summary, the operation and business at Singha Complex are still running as planned. At Metropolis Building, some of SME and start-up tenants received major impact and have to cancel their rental contracts. At this point, the company sees it as an opportunity to implement the new strategy to move forward with the renovation plan to accommodate the Next Normal of Commercial. It is expected that this year the commercial business will generate strong recurring revenue for Singha Estate as planned.