Another UK takeover part of Singha Estate’s Bt20-bn plan
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SINGHA ESTATE, the property arm of Singha Corporation, plans to invest Bt20 billion in real-estate projects this year, including more than Bt1 billion to acquire another hotel chain in Britain with nearly 1,000 guestrooms.
“Besides England, we’re also looking for potential acquisition deals for hotels in Germany and Spain,” chief executive officer Naris Cheyklin said yesterday.
About 80 per cent of the capital-expenditure budget will be spent on six to seven joint-venture and acquisition deals in various property and related businesses here and abroad. They include hotels, industrial estates, logistics, warehouses and shopping malls.
Last year, Singha Estate scooped up 26 UK hotels with 2,880 rooms for Bt8.8 billion.
The company is also looking for businesses, especially hotels and logistics companies, in the CLMV markets of Cambodia, Laos, Myanmar and Vietnam, with the focus on Myanmar and Vietnam.
The time frame is two to three years.
In Thailand, the company will this year make many JV and acquisition deals, including two industrial estates, one warehouse and two shopping-mall operators.
The aim is to balance its business portfolio.
“We will diversify our investment to different products and different markets to avoid risks,” he said.
The expansion is in line with the company’s five-year business plan to boost annual revenue to Bt30 billion by 2020 from Bt7 billion projected for this year.
“We expect the contribution from overseas businesses to soar from 20 per cent of total revenue to 30-40 per cent in five years,” he said.
The company on its own develops super-luxury real-estate projects, mainly condominiums, office buildings, retail complexes and housing estates.
Its projects under development and construction include the ESSE Asoke and residential projects under Nirvana Plc.
