SC eyes B10bn revenue from new sectors
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SC eyes B10bn revenue from new sectors

Set to invest B20bn between 2025-29

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An artist's impression of the plot on Bang Na-Trat Road, where a total lettable space of 80,000 sq m will be developed.
An artist's impression of the plot on Bang Na-Trat Road, where a total lettable space of 80,000 sq m will be developed.

SET-listed SC Asset Corporation will invest 20 billion baht between 2025 and 2029 in logistics, hotels and office rentals, aiming to generate a total revenue of 10 billion baht over the five-year period from these recurring income businesses.

Chief executive Nuttaphong Kunakornwong said diversifying into new sectors offering strong growth such as logistics and hotels would help the company generate stable income amid challenging conditions in the residential property market.

"The residential market this year faces three key challenges," he said. "High household debt is driving up mortgage loan rejection rates. Reduced consumer confidence has led to a decline in customer walk-ins, while a large volume of unsold supply has intensified competition."

SC's recurring-income businesses, which will focus on domestic investment over the next five years, are managed by SCX Corporation, a subsidiary that SC set up several years ago.

Rachod Nantakwang, managing director of SCX Corporation, said the majority of the investment would be directed towards logistics and hotels, with a plan to spend around 2 billion baht per year on each.

Between 2025 and 2029, SCX will develop rental warehouses with a combined space of 700,000 square metres, including 400,000 sq m on Bang Na-Trat Road at KM 20 and KM 23, 200,000 sq m in the Eastern Economic Corridor area, and 100,000 sq m in Ayutthaya's Wang Noi district.

Two of these projects are joint ventures with the Japanese developer Tokyo Tatemono. One will be based on a 90-rai plot on Bang Na-Trat Road at KM 20 in Samut Prakan, where the total lettable space of 80,000 sq m will be developed to capitalise on the growing e-commerce business.

Another will be located on 3009 Road in Laem Chabang, Chon Buri, with plans to develop a total lettable area of 46,000 sq m, comprising 13,000 sq m for a general zone and 33,000 sq m for a free-trade zone, targeting the automotive industry.

In terms of the hotel business, SCX is constructing Kromo, Curio Collection by Hilton, with 306 rooms near Sukhumvit Soi 29, which is a joint venture with Japan's Daiwa House Industry.

The second property will be The Standard Pattaya Jomtien, offering 161 rooms in partnership with SET-listed contractor Syntec Construction. These hotels are scheduled to open in the first and second quarters of 2025, respectively.

The company also has a 1.4-billion-baht investment budget for office rentals. It will primarily focus on renovating six existing towers with a combined lettable area of 120,000 sq m, with an average occupancy rate of 90%.

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