SET-listed developer Raimon Land plans to launch three new luxury low-rise housing projects worth a combined 16 billion baht, while selling the One City Centre office building to generate revenue more quickly, aiming to turn a profit next year.
Korn Narongdej, director and chairman of the executive committee, said each of the new projects will have unit prices starting from 450 million baht as they will target wealthy individuals with assets in excess of US$50 million.
"The number of wealthy individuals is increasing every year, as their wealth is passed down from generation to generation. This group of buyers has potential," he said.
"We will only launch low-rise houses as they allow us to realise revenue more quickly than condos."
The first project, worth 3 billion baht, which will be launched in the third quarter, will be located on Sukhumvit Soi 28.
It will comprise two single-detached houses and three townhouses priced between 500 and 700 million baht.
The second, Rosewood Residences Kamala, located on Kamala Beach in Phuket, will consist of 25 units worth 12 billion baht. Phase one, comprising nine units priced from 450 million baht, will be launched in the fourth quarter.
Additionally, there will be one riverfront house priced over 1 billion baht situated on the banks of the Chao Phraya River on the Thon Buri side.
Brenton Mauriello, chief executive, who replaced Mr Korn on April 1, said the funding for the new projects will be sourced through the establishment of private equity (PE) trusts which the company will set up and act as the anchor investor.
"The Thai real estate market is challenging," he said. "One of these challenges is access to funds, not only for customers but also developers."
To bolster its balance sheet, the company will also monetise One City Centre, a grade A office tower on Phloenchit Road, through either a PE trust or a real estate investment trust, with an estimated value of $100 million.
"The plan will be completed by the fourth quarter of this year to ensure that we turn a profit in 2025," said the new chief executive, who was formerly chief executive of renowned architecture firm DWP and joined Raimon Land as a director in February 2023.
Last year, Raimon Land recorded a net loss of 837 million baht, worsening from a net loss of 315 million in 2022.
"We will expand overseas next year through partnerships with local firms and introduce Raimon Land's brand to international markets," said Mr Mauriello. "One of the potential destinations is Australia."