SET-listed developer Raimon Land Plc (RML) plans to spend 10 billion baht a year to develop hotel, mixed-use and commercial projects to boost its recurring income from 12% to 50% over the next five years.
Chief executive Lionel Lee said two new projects are planned to launch next year. One is a mixed-use development worth 6-7 billion baht either in Kuala Lumpur or Cambodia.
"We are expanding our portfolio and diversifying to more non-residential businesses, including hotel, office, and food and beverage," he said. "We target 10 billion baht in revenue by 2023, with half from recurring income."
Last year 12% of revenue was from food and beverage and commercial properties, comprising Baan Ying Thai restaurant in Singapore, serviced apartment Klapsons The River Residences, community mall Vue and event space The Cube.
Raimon Land is developing One City Centre, a new grade-A office tower on a leasehold plot on Phloenchit Road with a net lettable area of 61,000 square metres. It is scheduled for completion in 2022 with a target income of 1 billion baht per year.
The company is also in talks with a Japanese partner to have a joint venture development for a 220-room hotel located on a one-rai plot on Sukhumvit Soi 19. Raimon Land earlier planned to develop Shaa Asoke condo, but changed to the hotel.
In March next year, the company expects to open 71 hotel rooms at Vue community mall, which will be changed to a food-inspired hotel under the Hotel Kitch brand. The room rate will be 3,000-3,500 baht per night.
Mr Lee said another new project being launched in 2020 will be Ardmore, a luxury condo on a 3.5-rai plot on Sukhumvit Soi 38 worth 7 billion baht.
As Singaporeans are the company's second largest source market for condo buyers, accounting for 12% of total foreign buyers, the company last week opened a sales gallery in Singapore with an investment of 30 million baht.
It spans 195 sq m on the second floor of Royal Square at Novena, a mixed-use tower on Irrawaddy Road, five kilometres north from downtown Singapore.
A show unit of Raimon Land Plc's The Estelle Phrom Phong condo at Royal Square, Novena in Singapore. It is the first show unit of Bangkok condo overseas.
The sales gallery shows a sample unit sized 57 sq m of The Estelle Phrom Phong, a luxury condo worth 5.6 billion baht on Sukhumvit Soi 26, which is a joint venture with Japanese real estate firm Tokyo Tatemono.
"The show unit is next door to Baan Ying as we want it to be a lifestyle investment," he said. "Target buyers are not only Singaporean investors but also Chinese in Malaysia and Indonesia who travelled to Thailand in large numbers the past couple of years."
According to Credit Suisse Research Institute's 2019 Global Wealth Report, Singapore ranked in the top 10 for the highest number of millionaires. Singaporeans had a savings rate of around 45%, a high amount per person.
"Their budget for investment in a Bangkok condo is around S$500,000 or 10-11 million baht a unit. Preferable locations include Thong Lor, Phrom Phong, Asok and Sathon," said Mr Lee.
RML shares closed yesterday on the SET at 1.05 baht, up one satang, in trade worth 2.95 million baht.