By SOMLUCK SRIMALEE
“This is part of our business strategy to secure strong financial results as we pursue aggressive growth for the period from last year to 2020, when we target total revenue of Bt20 billion,” Naris said at a press conference.
He said the company’s business strategy for the period would entail a focus on what it calls a “4S”approach - synergising positive outcomes from investment in high-potential business (Smart M&A); driving its corporate position to become a premier holding company through a robust financial status and premium quality product offerings (Strategic Move); building strong growth from a balanced diversified portfolio (Strong Growth), and committing to good corporate citizenship by following a sustainable growth philosophy (Sustainable Development).
By following its 4S strategy, the company has achieved growth in assets from Bt11.28 billion in 2014 to Bt40.91 billion in 2017.
The upcoming investment involves the outright acquisition of Outrigger Hotels Hawaii, worth Bt11.07 billion, for six hotel and resort properties in four countries.
This comprises the Outrigger Fiji Resort, Castaway Island in Fiji, Outrigger Laguna Phuket Beach Resort, Outrigger Koh Samui Beach Resort, Outrigger Mauritius Beach Resort in Mauritius, and Outrigger Konotta Maldives Resort in the Maldives.
Naris said the company was set to rapidly grow its business due to an effective investment strategy for an optimum portfolio allocation and the balance between its retail office towers and its hotel businesses, which will yield recurring income streams.
The balance between these recurring income streams and the non-recurring income from the company’s residential sector business will be about 50:50.
The company’s backlog is worth more than Bt14 billion and will start to be recognised as revenue by the fourth quarter of this year from two projects: The ESSE Asoke and Banyan Tree Residence Riverside Bangkok, developed by its subsidiary Nirvana Daii Plc.
This year the company targets double-digit growth from the Bt6.22 billion in total revenue and Bt571 million in net profit achieved by the end of last year, Naris said.
Combining the existing M&A hotel portfolio with the Crossroads hospitality project, the recurring income from the company’s hospitality and commercial businesses are projected to reach Bt10 billion by 2020, raising Singha Estate’s total revenue to Bt20 billion in 2020, |in line with the corporate goal, Naris said.