SET-listed property firm Singha Estate Plc (S) will spend 55 billion baht to acquire and develop hotels, office buildings and residential projects in Thailand and abroad over the next several years, aiming to generate at least 20 billion in revenue by 2020.
Chief financial officer Methee Vinichbutr said half of the investment budget will go to the developer's hotel business, including acquisitions of existing hotels in Southeast Asia.
The company is looking at hotels in Bali, Myanmar, Vietnam and Thailand.
"We aim to have hotels worth over 20 billion baht in our portfolio under a subsidiary, S Hotels & Resorts Co, before launching an IPO for that subsidiary by 2020."
The investment budget for hotels will also include developing resorts in the Maldives. At least 11 billion baht will be spent by year-end to develop the first phase of the Emboodhoo Lagoon project, encompassing three out of nine islands.
Singha has invested 10 billion baht in two hotels in Thailand and 29 hotels in Britain. The Thai hotels, which the company wholly owns, include the 77-room Santiburi Beach Resort & Spa on a 57-rai plot on Mae Nam Beach, Samui. That resort had a 76.5% occupancy rate in the first half.
The other is Phi Phi Island Village Beach Resort on a 167-rai site on Koh Phi Phi, for which Singha has increased the number of rooms to 201 from 156 last year. The occupancy rate for that resort was 82.5% in the first half.
The British hotels, meanwhile, are operated via a 50:50 joint venture with a Thai partner, Fico Group.
Around 20% of Singha's three-year, 55-billion-baht investment plan will be for office buildings. Currently, it is in talks with a landlord to lease a plot in Bangkok to develop a new office tower with an investment of 4 billion baht, Mr Methee said.
The company expects to have at least three office towers with a combined lettable area of more than 200,000 square metres by 2020, which it will then sell to a real estate investment trust in the coming years.
It has an office tower, Suntowers Complex, in Chatuchak district with a lettable area of 61,381 sq m and an occupancy rate of 93%. It is building 56,600 sq m of office space at Singha Complex, a mixed-use development on Asok Road.
Boon Rawd Brewery Co, Singha's major shareholder, will rent 10,000 sq m at the Singha Complex next year. Boon Rawd will pay 1.9 billion baht for a 50-year lease contract to Singha by the fourth quarter.
"With the rental income gained, we will secure at least 4 billion baht in revenue this year, up from 3.6 billion last year," said Mr Methee. "A great amount of revenue will come in from 2019 onwards."
In November, Singha will launch two super-luxury residential projects worth over 11 billion baht: The Esse Sukhumvit 36, a joint-venture condo with Hong Kong Land Ltd worth 6.17 billion baht; and Santiburi The Residences, worth 4.93 billion baht.
S shares closed yesterday on the Stock Exchange of Thailand at 4.12 baht, up eight satang, in trade worth 79.7 million baht.