Sanrisi growth to boost Plus Property by 20% next year
Sansiri subsidiary Plus Property, a real-estate management and brokerage company, targets growth of at least 20 per cent next year, against expected 2012 income of Bt650 million.
The unit’s revenue surge is due to Sansiri’s strong growth, which is expected to continue next year, Apichart Chutrakul, chief executive of both Plus Property and Sansiri, told a news conference yesterday.
Sansiri targets presales of Bt42 billion this year and Bt50 billion in 2013.
“The main driver of Sansiri’s business growth next year will come from our new residential projects upcountry, which will account for about 30 per cent of our presales worth Bt42 billion this year,” he said.
Up to 90 per cent of the property management business of Plus Property comes from Sansiri’s residential projects, which will total some 140 by year-end.
This business has generated about 33 per cent of the subsidiary’s revenue this year. “Our property management will focus on Sansiri’s residential projects because we want to create the best after-sales service for our customers.
“This is a value-added service for our residential projects,” said the chief executive. The property management service will add rentals for holiday business to its portfolio next year, serving customers who buy units upcountry as holiday residences and for rental purposes.
The additional service will generate a return of 6 to 10 per cent a year for customers opening up their homes for rental, depending on the location, Apichart said.
Meanwhile, up to 50 per cent of Plus Property’s agency and brokerage portfolio comes from Sansiri’s residential projects, and the rest from other property firms. The company now has 16,000 units under management nationwide, worth about Bt50 billion.
This business has generated around 49 per cent of its revenue this year. The next-largest revenue contributor is the management of commercial buildings. Some 3 million square metres of buildings across the country have generated about 18 per cent of this year’s income.
“Plus Property has had revenue growth of 29 per cent this year thanks to our parent company’s business growth,” Apichart said.
The company is substantially increasing its staff to support next year’s predicted 20-per-cent growth, he added.
The number of employees at Plus Property will rise from the current 1,300 to 1,560 during the course of the year. “Staff is our key to driving business growth in the long term,”|he said.
