Nirvana Daii Plc (NVD) is poised to expand its housing development business, with plans to launch nine projects worth a total of 21.1 billion baht, the largest number since its establishment.
After restructuring and reforming two years ago, the company plans to rename itself Nirvana Development in April, a former name it used after its establishment in 2005.
Chief executive Sornsak Somwattana said this year the company is ready to gear up residential development with a presales target of 8.5 billion baht, up 1.6 times from 3.26 billion last year, and a revenue growth target of 75% to 4.5 billion.
"We delayed this business direction for a while because of restructuring via major shareholders in 2021, a year we focused on reorganising the balance sheet," he said. "Last year we reformed with new product development and land acquisition for this year's business plan."
In January 2021, SET-listed developer Singha Estate sold all the ordinary shares it held in NVD, totalling 711.85 million shares accounting for 51.5% of total paid-up capital, to the Somwattana family.
Five months later, big lots of NVD shares were acquired by Chatchai Piyasombatkul, the owner of Piyasombat Group and one of Bangkok's largest landlords, and Metro Group, one of the largest producers of wood-based panels.
The Piyasombatkul family, which owns several freehold commercial properties such as the Vorasombat Building, Vongvanij Complex, Piya Place on Lang Suan and Tonson Road, and Novotel Sukhumvit 20, currently holds 33.3% of NVD.
"Mr Chatchai helped us deal with a two-rai plot of land on Sukhumvit Soi 23 where we plan to launch a condo project worth 3 billion baht this year," said Mr Sornsak. "His experience in real estate also helped shape our business."
The new projects slated for 2023 comprise three sites of single detached houses worth 7.48 billion baht, a townhouse project worth 850 million, three home office projects worth 4.4 billion, and two condo projects worth 8.36 billion.
The other condo project is a large-scale development comprising 1,832 units worth 5.36 billion baht located on a 5.2-rai plot near Central Plaza Rattanathibet mall. With a 45-storey tower, the project will have 100 functions to serve 1,000 lifestyles at affordable prices, he said.
The company also plans on spending 800 million baht to develop Nirvana Porch, a lifestyle mall on 12 rai in Krungthep Kreetha with a net lettable area of 7,800 square metres. This project is scheduled to open by the end of this year.
NVD's revenue last year dropped 15% from 3 billion baht in 2021. Revenue from home construction under its Daii affiliate was flat at 264-268 million baht, accounting for 10% of the total.
"We will rename the firm Nirvana Development to be a real developer, focusing on property development," said Mr Sornsak.
"Our homebuilding business will remain, but its portion will be diluted after the property development business grows."