Thursday, October 17, 2019

Diversification the key for fast-growing firm

Nov 11. 2018
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SINCE ITS ESTABLISHMENT nine years ago, Origin Property has seen its pre-sales value climb from Bt198 million in 2010 to Bt24 billion this year, mainly due to its success in building residential projects suitable for different groups of people. 

The company currently has a staff of 1,000, from four at the beginning. 

“We grew continuously through the years in line with market demand, partly due to our emphasis on the middle-income market where homebuyers have high-spending power and are less price-conscious,” said Peerapong Jaroon-Ek, the company’s chief executive officer. 

The company’s total assets stood at Bt26.3 billion as of June 30, from lower than Bt100 million in 2010. 

It has now evolved into an integrated property company from a mere developer through the establishment of Primo Service Solution Co Ltd, its property management unit. The subsidiary successfully collaborated with startups in the development of the digital butler model – a digital platform offering a selection of services to meet residents’ demands at the company’s projects. The new company, tasked with developing innovative services, plans to apply for listing in the Market for Alternative Investment (MAI) when its annual net profit comes close to Bt100 million. 

It showed a net profit of Bt30 million last year. 

For additional income, the company is also looking for opportunities to provide innovative services to properties of other developers. 

Another subsidiary, One Origin Co Ltd, was set up as an investment vehicle in the hospitality sector. It has so far invested Bt10 billion in six hotels and retail projects that will generate recurring incomes to the parent company, starting with the completion of Staybridge Suites in Thonglor next year. 

The first development is expected to contribute Bt300 million yearly.

Other projects under construction include Holiday Inn & Suites at Sriracha Laemchabang in Chon Buri province, a hotel ‘One Origin’ on Sukhumvit 24 and a retail complex ‘One Origin Phayathai’. These projects are scheduled for completion between 2019 and 2023 and expected to contribute up to Bt5.2 billion annually to the group. 

Origin Property plans to set up a real estate investment trust to raise funds from the capital market for business expansion. 

“We aim to become a sustainable company like Siam Cement Group and PTT. This is the reason behind the diversification of our business activities,” Peerapong added.


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