Univentures Plc (UV), a property company owned by magnate Charoen Sirivadhanabhakdi's son Panot, plans to add more property projects for rent to generate recurring income in the long term.
Worawat: Board wants steady pace
It is the same policy adopted by TCC Land, Mr Charoen's property development arm.
Univentures president Worawat Srisa-an, who joined the SET-listed company on May 1, said more grade-A office, hotel and retail projects will be added in the future.
The company now owns Park Ventures, a luxury office-cum-hotel project on Wireless Road. It is the country's only platinum-certified building for leadership in energy and environmental design.
Last year, the recurring income from Park Ventures accounted for only 7% of total revenue of 5.48 billion baht.
The major revenue champion was Grand Unity Development, a condo development subsidiary, making up 3.14 billion baht.
"The board wants us to grow at a stable pace and not to move too fast, or we'll stumble over our own feet," said the 41-year-old Mr Worawat.
Univentures plans to develop a mixed-use project every three years to boost recurring revenue to 20% of the total in nine years.
"Hotels, offices, retail outlets and residences can complement each other," said the former vice-president for master plan projects at TCC Land Development Co, one of TCC Land's subsidiaries.
While serving TCC Land Development over the past seven years, Mr Worawat, the second son of former education minister Wichit, studied and planned many projects including more than 10,000 rai in Cha-am slated for a mega adventure park and a rejuvenation project.
Mixed-use projects like Park Ventures take only a few years to complete and generate incomes in a short period while TCC Land Development's master plans are gigantic and take more than seven years to complete.
Large projects are also more susceptible to factors such as the economic swing, changes in government policy and political situation. For the Cha-am project, the high-speed train plan may speed up its progress.
One of TCC Land Development's big projects which have progressed well is the 400-rai plot in the Kaset-Nawamin area of which a quarter was jointly developed into Nawamin City Avenue with the SF Group.
A high-end residential project, The Royal Residence, is also being developed by TCC CapitaLand, a joint venture between TCC Land and the Singapore-based developer CapitaLand.
Shares of UV closed yesterday on the SET at 7.90 baht, down five satang, in trade worth 40.3 million baht.