SET-listed All Inspire Development Plc plans to join Japanese railway and property firm JR Kyushu to develop a mixed-use project in outer-city locations to diversify risk amid an unfavourable condo market.
All Inspire's chief executive Thanakorn Thanawarith said the company is looking for plots in potential locations outside the inner city because central areas are mostly targeted by large developers.
"Our Japanese partner is eager to increase investment in the property sector in Thailand," he said. "It has a strong financial status to invest in commercial properties including offices and hotels."
JR Kyushu (Kyushu Railway Co) teamed up with All Inspire last year, starting with the Impression Ekkamai condo project worth 4.8 billion baht in which another Japanese property firm, Hoosiers, also co-invested.
Mr Thanakorn said the company aims to have revenue from recurring income account for 10% of total revenue in the next three years to minimise risk from the condo market slowdown.
All Inspire is spending 580 million baht to remodel The New Forum Plaza, a mall in Muang district of Chon Buri that it has leased for 29 years.
The market-style plaza occupies nearly 12 rai with a total lettable area of about 11,500 square metres. It is under renovation and will be completed by February for an opening in June 2020.
The plaza now has a pre-lease of 90%, with 65% being food and drink tenants to suit consumers' changing lifestyles. Rental rates will be between 400 and 1,200 baht per sq m per month, depending on the floor.
All Inspire, which earlier focused on condos and partly developed townhouses, will expand to single detached houses and duplex houses as it aims to boost revenue from the segment to 20% in 2020 from 10% this year.
Key segments will be units priced from 3 million baht and above for townhouses and higher than 4 million baht a unit for single detached houses and duplex houses.
All Inspire yesterday reported a net profit of 342 million baht on revenue of 2.34 billion baht, up 61% and 46% respectively. Presales in the period totalled 6.5 billion baht, aiming at more than 7 billion baht by the end of the year.
As of the end of September, All Inspire had a sales backlog of 11.4 billion baht, which comprised 7.7 billion baht from low-rise condos, 3.4 billion baht from high-rise condos and 300 million baht from townhouses.
ALL shares closed yesterday on the Stock Exchange of Thailand at 4.22 baht, down 32 satang, in trade worth 33.3 million baht.