Singha Estate to invest Bt100 bn over 5 years in property projects
Singha Estate Plc, the real estate arm of Thailand's leading brewery firm Singha Corporation, plans to invest Bt100 billion in developing various property projects over the next five years - including hotels, homes, office buildings and retail buildings.
The company is looking for joint venture and acquisition deals with local partners in Thailand and is eyeing neighbouring markets such as Myanmar. Naris Cheyklin, CEO of Singha Estate Plc, said that of the Bt100-billion investment budget, more than 50 per cent would be allocated for merger and acquisition deals.
He said the company expected to achieve Bt2 billion in revenue next year and reach Bt20 billion in annual revenue in the next five years, contributing 20 per cent of Singha Corporation’s total turnover.
“We are nearly ready to conclude two joint venture and acquisition deals,” he said. “The first is to acquire a hotel at a prime tourism destination in the Kingdom at the cost of Bt3 billion, while the second is to conduct a joint-venture agreement with a local non-listed housing estate firm at a similar cost of Bt3 billion,” he said, adding that at least one of the deals would be concluded by the end of this year.
Naris said a highlight project to be developed next year would be the Bt10-billion Singha Complex on 11 rai (4.3 acres) at the Asok-Phetchaburi intersection. The mixed-use complex will include office space, a 4,000-seat concert and convention hall, a hotel, and retail space. Construction is expected to begin mid-2015 and be complete in 2017. The company has also invested Bt500 million on renovating of Santi Buri Beach Resort & Spa, a resort hotel in Koh Samui. The hotel will be re-opened next month.
Another project is a condominium building on two at Asok that will be launched next year.
Naris said the company was also focusing on lifestyle malls in Bangkok, Hua Hin, Khon Kaen, and Nakhon Ratchasima, and was interested in expanding into logistics and warehouse facilities in the near future.
“We are doing a joint-venture agreement with local partner in Myanmar to develop hotels and office buildings in major cities,” he added.
Naris spent 16 years with Central Pattana, with leaving the mall development company as its chief financial officer. He joined Singha Estate for eight months as its first CEO.
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