Siam Sindhorn Co has revised a development plan for Sindhorn Village, a mixed-use residential project worth 55 billion baht on a combined 56 rai on Lang Suan Road, to add more hotels as it aims to increase its short-term lease business.
Executive director Kajohndet Sangsuban said the company is increasing the number of hotels in the project to balance revenue from long-term and short-term lease business.
"We should have a good mix of recurring income," he said.
"Long-term rent will be from condo projects, which we will lease for 30 years plus the option of 30 more. Short-term income will be from hotels."
Under the new plan, there will be five luxury condo projects worth more than 18 billion baht, being sold under a leasehold contract of 30 years with an option for a 30-year extension.
Of these projects, three have been launched in the last four years -- Sindhorn Residence worth 4.5 billion baht, 85% sold; Sindhorn Tonson worth 2 billion and 50% sold; and Sindhorn Lumpini, worth 2 billion and 85% sold.
Today the company is launching the fourth condo project, The Residences at Sindhorn Kempinski Hotel, worth 9 billion baht. With 33 storeys, the project will have 231 units sized 50-500 square metres priced from 220,000 baht per sq m, or between 10-150 million baht a unit.
Siam Sindhorn expects to have 70% of units sold by the end of next year and will launch the fifth condo project with eight storeys under a leasehold contract in 2019. This last project was initially planned to be a medical centre.
"Bangkok Hospital plans to develop a large-scale wellness centre at Nai Lert Park on Wireless Road, which is not far from our project, so we changed the medical centre development plan," Mr Kajohndet said.
There will be three hotels at Sindhorn Village -- Sindhorn Kempinski Hotel Bangkok with 280 rooms; Kimpton, a hotel brand owned by the InterContinental Hotels Group; and the third on a four-rai site behind Mater Dei School, which was earlier projected to be a mid-priced leasehold condo project.
Sindhorn Village is located on two pieces of land, the larger of which is a 52-rai plot on Lang Suan Road, adjacent to Sarasin and Ton Son roads.
The smaller plot is four rai behind Mater Dei School. Total construction investment is 28 billion baht, while development value is 55 billion baht.
The project is scheduled to be completed by the end of 2019.
The company has 14 rai available for future expansion, located on Sarasin and Ton Son roads, facing Lumpini Park.
"We will wait and observe the supply and demand in the luxury residential segment before forming a development plan for this plot, as there will be new supply from One Bangkok and Dusit Thani Hotel," he said.