Singha Estate plans 3 low-rise projects
Singha Estate Plc plans to launch three high-priced, low-rise housing projects from 2022 onwards, after freezing its new condo projects for the past 18 months.
Chairath Sivapornpan, chief financial officer at the SET-listed developer, said the first project slated for the third quarter of next year will have units priced between 50-100 million baht, a segment the company had an expertise in.
"Housing demand in high-end single detached houses is robust," he said. "We are dealing with another two land plots for launch next year. Our target unit prices will be between 10-100 million baht."
Since February last year the company has paused new condo launches as the market saw a large amount of unsold supply and weaker demand amid the unfavourable sentiment of the Covid-19 pandemic.
Mr Chairath said the company would focus on existing condo inventory totalling 6.62 billion baht from three projects.
"We will relaunch The Extro brand by the end of the year to respond with the country's reopening plan for foreigners," he said. "Thailand remains a top choice for a second home among buyers in Hong Kong and China."
Singha has also diversified into industrial estate development, planning to spend 1.8 billion baht to develop infrastructure and utilities on a new industrial estate project in Ang Thong province next year.
Of the total 1,790.5 rai, the project will comprise an industrial zone and reservoirs.
Its largest target of 70% will be businesses in the province and surrounding areas, while 30% will be raw material food and high-tech food industries.
From 2023, revenue from recurring income comprising hotels and offices, and that from property for sales including residential development and industrial estate, will have an equal share of 50% each, compared with the current 60% and 40%, respectively.
In the first half, Singha posted a net loss of 359 million baht on revenue of 3 billion baht, compared with a net loss of 612 million baht and revenue of 3.1 billion baht in the prior-year period.
First-half revenue comprised 1.1 billion baht from residential development, declining 17% year-on-year.
Earnings from the hospitality business soared 17% to 1.34 billion baht, driven by hotels in the UK, after S Hotels & Resorts Plc, one of its subsidiaries, purchased the remaining 50% stakes of 26 hotels in Britain in February 2021.
Income from rental office spaces rose 6% to 489 million baht. At present, the firm has four towers with a total lettable area of around 139,500 square metres with an occupancy of 88%.
A new tower in Bangkok's Chatuchak area, S Oasis, with a lettable area of 54,100 sq m, is under construction and scheduled for completion in 2022. Targeted tenants will be firms in the energy and telecommunication sectors.