By SOMLUCK SRIMALEE
The firm also signed a memorandum of understanding to buy 53 condominium units of Ritz-Carlton Residences Bangkok in the MahaNakhon building and Nimit Lang Suan project from listed property firm Pace Development Corporation Plc.
“We continue to be a property developer but our investments in hospitality, co-working space, rental management and indoor farming will expand business opportunities and generate new revenue from property-related industries,” Sansiri Plc’s president Srettha Thavisin said at press conference yesterday.
“We will utilise the partnerships to strengthen our core real-estate business.”
The five firms are Standard International LLC, which owns The Standard Hotel and One Night app; Jamon Ltd; Winkontent AG, the publisher of Monocle magazine: Farmshelf Co Ltd; and JustGroup Holdings Pte Ltd.
Tyler Brule, chairman of Winkontent AG, told The Nation that Sansiri’s investment in the company offered the potential for business expansion in Asean.
The firm plans to launch its first residential project in Bangkok next year in a joint venture with Sansiri Plc.
Brule said the company also is interested in developing residential property in Singapore, Hong Kong and Tokyo.
“We may ask Sansiri Plc if it is interested in partnering with us,” he said.
Amar Lalvani, CEO of Standard International LLC, said the company planned to open its management hotel chain in Thailand next year focused on Bangkok and Phuket. The company is also interested in launching its management chain in Hong Kong, Singapore, Tokyo and Shanghai.
“Five firms with six business will expand their investments in Thailand next year and also in Asean. For example, JustGroup plans to open two co-working spaces in Bangkok next year. Hostmaker also will expand its service in Thailand next year,” Srettha added.
Sansiri Plc’s chief financial officer Wanchak Buranasiri added that the income from all five firms that the company was investing in would be booked as company revenue at the end of this year.
The company also plans investments in business and technology likely proptech, which is projected to be worth Bt1.5 billion from 2018-2020, in keeping with its business strategy to expand investments in technology and innovation related to the property business, Wanchak said.
Wanchak added that the investments came from the company’s initial cash flow.
The company will borrow from commercial banks or issue debentures after completing due diligence for the deal with Pace Development.
Sansiri reported to the Stock Exchange of Thailand yesterday it had taken a 35.09-per-cent stake in the US-based Standard International LLC, which also owns The Standard Hotel and One Night, a “spontaneous booking” application.
The investment required US$58 million or Bt1.92 billion and will be made over 5 years. The first payment, equal to $16.29 million, or approximately Bt541.46 million, was made on Tuesday.
It has invested 5 million pounds, or about Bt219.75 million, in UK-based Flying Jamon Ltd, which owns Hostmaker, London’s premier Airbnb management firm. Payment for the 11.2-per-cent stake in the company was made on Tuesday.
The company has also budgeted $5.9 million or Bt195.87 million for a 13.04-per-cent stake in Winkontent AG, which is a media brand spanning print, |online, radio, film, retail and hospitality.
It has invested $300,000 in US-based Farmshelf smart indoor farms, taking a 5-per-cent stake in the company.
Sansiri’s subsidiary in Singapore, Sansiri Global Investment Pte Ltd, is taking a 6.09-per-cent stake in co-working space firm, JustGroup Holdings Pte Ltd in Singapore. Investment in JustCo is worth |$12 million, or about Bt397.9 million.
The company also reported to the SET that it has signed a memorandum of understanding with Pace Development Corporation Plc and Pace Project Two Co Ltd for purchase negotiations and due diligence of the Nimit Lang Suan project and 53 condominium units of Ritz-Carlton Residences Bangkok project in the MahaNakhon building project.
“We cannot provide more investment detail with Pace Development Plc because this is under the due diligence process. However, the deal will be complete within 60 days,” Wanchak said.