SET-listed developer Singha Estate Plc (S) will spend 10 billion baht this year to acquire two hotels at major tourist destinations and office buildings in Bangkok.
An artist's conception of the Singha Complex, a mixed-use development project that will be located on an 11-rai site at the corner of Asok and Phetchaburi roads.
The company is the property arm of the Bhirombhakdi family's Boon Rawd Brewery Co.
Longlom Bunnag, chief investment officer and executive director, said the developer would spend 5 billion baht to buy the two hotels, each containing at least 150 rooms, in Phuket, Krabi or Phangnga in the second half.
"The hospitality and leisure business is our short-term investment target, as it is in line with the country's main strength, tourism," he said.
Singha is now setting up another team for hotel management and investment, as the existing one is not enough.
The present team is busy taking care of the Santiburi Beach Resort & Spa, a five-star hotel with 71 rooms on Koh Samui it acquired last year.
To ensure a good return, the company's acquisition model will focus on property segments that are in a down cycle where supply is too large and demand slows down, both in Thailand and abroad.
Normalised initial returns of at least 10% are expected, higher for riskier assets, the former chairman of property consultant Jones Lang LaSalle (Thailand) said.
Singha is also in talks with a few office buildings in Bangkok about taking them over, with a budget of more than 5 billion baht set.
Occupancy in these buildings stands at 70% or higher.
"Revenue-producing assets are our interest, as they can generate revenue from the day we enter," Mr Longlom said.
Other property segments eyed include golf courses, retail shopping and community malls.
Singha is also interested in the warehouse business, which will accommodate logistics, one of the businesses of Boon Rawd Brewery.
The company expects recurring revenue and residential development to each account for half of total revenue through an investment of 100 billion baht from 2015-19.
Besides the 10 billion baht for property acquisition, Singha will spend another 10 billion this year for residential development.
The amount includes land purchase and construction.
Currently, it develops low-rise residential projects for sale through subsidiary Nirvana Development Co, which it acquired early this year.
Mr Longlom said the company was also looking to invest abroad.
Developed markets such as Japan and Singapore, which are more transparent, are considered attractive for property investment, he said.
They have market indicators to represent the market outlook.
S shares closed yesterday on the SET at 8.15 baht, down five satang, in trade worth 28 million baht.