Singha Estate plans big outlay

Singha Estate plans big outlay

Singha Estate Plc (S), the SET-listed property development arm of Boon Rawd Brewery Co owned by the Bhirombhakdi family, is planning four new projects next year comprising offices, a hotel, retail and residences worth a combined 12.8 billion baht.

The Boon Rawd subsidiary Singha Property Management Co and Santi Bhirombhakdi, its major shareholder, acquired SET-listed developer Rasa Property Development Plc in April. Rasa Property later increased its registered capital to 4.71 billion baht from 550 million and changed its name to Singha Estate Plc, with Singha Property Management and Mr Santi major shareholders, holding 56.97% and 31.36%, respectively.

Naris: Seeking a foreign partner

"We're seeking a foreign strategic partner with expertise in property development to help Singha expand both domestically and internationally," Singha chief executive Naris Cheyklin said yesterday.

Next year the biggest project will be the Singha Complex, a mixed-use development located on 11 rai at the corner of Asok and Phetchaburi roads at the site of the former Japanese embassy. The embassy sold the plot four years ago to Singha Property for 520,000 baht a square wah, then recently transferred it to Singha Estate.

Singha plans to develop hotel, retail, office and residential projects there worth a combined 6 billion baht over a construction area of 144,250 square metres. Construction will start in next year's second quarter for completion in late 2018.

On Asok Road, it has another plot sized two rai opposite GMM Grammy Place where it plans to develop a 39-storey condo project with 329 units worth 2.85 billion baht by the end of next year.

In next year's first quarter, it will launch a low-rise condo project worth 1.75 billion baht on 13.5 rai on Ram Intra Road that will comprise five seven-storey buildings and a total of 686 units.

The company is also planning a high-end single house project worth 2.24 billion baht next year on a 30.5-rai site on Pradit Manutham Road in the Nuan Chan area with 16 units sized one rai each.

Singha has four subsidiaries — Singha Property Development with registered capital of 2.56 billion baht, Bhiromphat (73 million), Max Future (1.5 billion) and S Hotel Management (1 million).

Singha also plans to add 31 rooms to the Santiburi Beach Resort & Spa, its five-star hotel on 57 rai on Koh Samui. Its first-half occupancy rate was 61%, down from 79% last year.

Unsold properties developed under Rasa that remain include 10 units worth 49.9 million baht at Intro Condominium on Pradiphat Road, 28 townhouses worth 84 million baht at Rasa Maxx Ville on Phahon Yothin Soi 73 and 3,500 sq m of rentable space at The Lighthouse on Charoen Nakhon Road.

The developer gained first-half revenue of 306 million baht, down from 391 million in the same period last year.

S shares closed yesterday on the SET at 8.90 baht, up 2.05 baht, in trade worth 563 million baht.

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