Raimon Land targets luxury growth with Sukhumvit and Phuket projects

Raimon Land Plc (RML) is preparing to form joint ventures with foreign partners to develop luxury and ultra-luxury property projects worth more than 20 billion baht, with completion expected over the next three to four years.

RML is working with a foreign partner on two new developments in Bangkok’s prime Sukhumvit area. One will be a branded residence and the other a high-end hotel, with a combined value of around 13 billion baht.

The developments highlight the concepts of “Local Soul” and “Smart Luxury”, aiming to combine international-standard luxury with a strong sense of place.

Waroon Warawanisha, chief financial officer of RML, told The Nation in an exclusive interview that the company has been in talks with a foreign family office for about a year and expects the partnership to be confirmed as early as June.

“We have been talking for about a year and expect to confirm the deal next month, in June. It is about 80% certain,” he said. “The projects should be completed in around three to four years.”

Meanwhile, RML is moving ahead with SLS Residences Phuket Kamala, a super-luxury residential project worth around 4 billion baht, developed in collaboration with Ennismore, the lifestyle hospitality group under Accor.

Located on Kamala Beach, the project will feature just 13 villas, with usable space of up to 2,200 square metres. Villas are expected to sell for around 250 million to 500 million baht each.

The development is positioned as a high-end beachfront residence that combines design, hotel-style services and private living in one of Phuket’s most sought-after locations.

“We have just signed an agreement with Ennismore and expect to start construction soon,” Waroon noted. “Completion should take around two to three years.”

Partner funding to support early construction

Waroon explained that RML would fund the projects through a mix of partner capital and the company’s own investment. If sales perform as expected, the company may need little or no bank financing.

However, RML has also prepared a backup plan in case sales fall short of projections. In that scenario, the company may seek additional bank financing, though Waroon stressed that the funding requirement would not be substantial.

For now, partner capital will allow RML to begin some construction work in advance, helping to build confidence among prospective buyers.

“When customers come to buy, they will not just see plans on paper. They will see actual construction progress,” he added.

RML enters divestment phase to strengthen liquidity

Amid economic headwinds and softer property sales, Waroon explained that RML has been working to preserve liquidity by divesting non-core assets, reducing debt and continuing to develop projects that can generate recurring cash flow.

“We call this a divestment period because we know we have to make the company as lean as possible and keep debt as low as possible under the current economic conditions,” he said.

RML aims to complete planned asset sales and transfers within the next three to five months, with the goal of bringing liquidity back into the business and easing its debt burden.

Waroon acknowledged that the company’s debt-to-equity ratio currently stands at around 2:1, but expects the figure to continue improving.

Debt repayments reinforce investor confidence

Over the past two years, RML has repaid more than 2.7 billion baht in debentures on schedule. The company has also recently announced the early redemption of debentures worth more than 140 million baht.

The move reflects the company’s liquidity position and its ability to manage financial obligations, while reinforcing investor confidence through disciplined debt repayment and financial management.

“The repayment of more than 2.7 billion baht in debentures over the past two years reflects the company’s ability to effectively manage liquidity while reinforcing investor confidence,” Waroon said.

“In addition, the recent announcement of early redemption further demonstrates RML’s financial readiness and prudent debt management capabilities.”

RML prepares new debenture offering of up to 510 million baht

At the same time, RML has submitted a registration statement and draft prospectus to the Office of the Securities and Exchange Commission in preparation for the issuance of six new debenture tranches, with a total offering size of up to 510 million baht.

The debentures will have an average tenor of no more than two years and will offer interest rates ranging from 7.15% to 7.35% per annum.

According to the company, the rates represent an attractive return compared with general fixed-income instruments currently available in the market. The relatively short tenor also gives investors greater flexibility in managing their portfolios amid ongoing market volatility.