Singha Estate to invest B11 billion in projects in 2022, targets hotels and offices
Thailand property giant Singha Estate says it wants to invest 11 billion baht in new and current projects in 2022, aiming for a 73% increase in revenue — as soon as global tourism improves.
Of that figure, some 4 billion baht will be reserved for fresh plots of land for low-rise housing developments aimed at the upper end of the market, as the company expects to improve their net profit by at least 10% this year, said the company’s chief financial officer, Chairath Sivapornpan…
“We will launch three new projects this year, all low-rise houses. For the condo business, we will focus on existing projects and wait for foreign tourists to return in the second half this year to boost sales.”
One of the new projects is planned for Phatthanakan Soi 32 in Bangkok and consists of 32 single detached residences valued from 50 and 100 million baht each, as well as four units of home offices valued at 20 million baht each. The overall value of the deal is 2.8 billion baht.
Singha also announced that it would invest 275 million baht to a firm owned by its key investor Santi Bhirombhakdi for about 13-rai (20,800 square metres) of land on Sukhumvit Soi 44 in Si Racha District, Chon Buri.
The company plans to spend 1.5 billion baht on hotel businesses, 1.5 billion on industrial estates, 2 billion on current projects and 1 billion for the development of S Oasis — a new office building planned for Chatuchak. The company plans to open S Oasis in the second quarter of 2022, hoping to lease out about 60% of the building’s 54,100 square metres by the end of 2022.
Meanwhile, Singha Estate intends to sell two office spaces in the third quarter — Metropolis at Sukhumvit Soi 41 and Singha Complex on Asok Road — as well as retail space at Sun Tower in the Chatuchak neighbourhood.
The potential buyer is reportedly S Prime Growth Leasehold Real Estate Investment Trust, with a lease arrangement worth some 6.45 billion baht. The company intends to generate some 13.4 billion baht in total revenue by the end of the year, for a 73% increase from 2021.
Singha Estate projects that the international hotel industry will be a key contributor to its expected financial success this year, providing an estimated 63% of its total revenue – a five percent increase from last year’s 58%.
The company says its hotels in five countries have been recovering since the second half of 2021, and expects the momentum to continue this year, as countries across South Asia further ease their pandemic travel restrictions. As of January, 36 of the company’s 38 hotels had reopened, the Bangkok Post reported.
SOURCE: Bangkok Post
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