SET-listed developer SC Asset Corporation is bullish on the non-residential property business, with plans to invest in logistics and launch a new hotel in Bangkok's Ratchawat area in December this year.
Pradthana Patsaman, the company's chief financial officer, said logistics is a new part of its pivot after the company added a hotel in Thailand and apartments for rent in the US to its portfolio.
"Last month we set up SCX One Co with a registered capital of 100 million baht to invest in the logistics business. The new firm is a subsidiary of SC Expedition Co, one of SC's subsidiaries for investment in new ventures," she said.
One of the new ventures under SC Expedition is Yanh Ratchawat, a midscale hotel with 78 keys scheduled to open in December.
With a workation concept, the hotel targets 60% Thai clients and 40% foreign travellers with room rates of between 2,000-2,500 baht per night.
The hotel is a renovation of the Ratchawat Building, a three-storey tower on one rai in the Ratchawat area that SC leases from PT Corporation, a property firm owned by the Shinawatra family which holds around 60% of SC.
Other new ventures were invested through SC Alpha Inc, one of SC's subsidiaries which had a total investment budget of US$100 million in the US alone between 2021-2023.
As of June 2022, SC Alpha spent a total of $40.6 million on apartments for rent in the US.
Around $1.5 million was invested in PRM Fund V which mainly invests in apartments.
The remainder went to three serviced apartments in Boston. Two are on Hanover Street and Parmenter Street with a total of 28 units where it spent $24.2 million. The occupancy rate was 95%.
The other was on Salem Street with 13 units where it invested $8.9 million, gaining an occupancy rate of 100%.
In Thailand, SC plans to launch 17 new residential projects worth a combined 26.4 billion baht in the second half of 2022.
It aims to achieve 22 billion baht both in revenue and presales by the end of the year.
During the first six months, it recorded 969 million baht in net profit, up 3% from the same period last year, on revenue of 9 billion baht, representing an increase of 4%.
Of the revenue, 95% was from residential development business and 5% from recurring income from four office towers for rent.