Disposal of 52% ordinary shares in Nirvana Daii Plc. in January 2021, enabling the Company to pursue its own low-rise housing development projects without restrictions, and to continue to build on the success of Singha Estate brand. This pivotal development of the Company’s low-rise residential property business followed the remarkable 2021 sellout of the Company’s Santiburi The Residences, an ultra-luxury, low-rise residential project, featuring single detached houses, priced from THB250 million per unit. It is our belief that such accomplishment will enable Singha Estate to leverage the brand equity. Thus, passing on the aesthetic value and craftmanship in our home-building DNA to future projects targeting the low-rise residential market-which accounts for almost half of the residential market share-to reach out to prospective homeowners at more varied price points over wider geographic locations.
With the expectation that country’s tourism sector of the United Kingdom to recover faster than any other region, including the strengths of its portfolio asset also aligns with the hotel characteristics preferred by the Company in regard with the diverse geographical locations for income distribution and balancing income on high-season to S Group’s hotels, Singha Estate has acquired 100% shareholding in 26 hotels in the United Kingdom in February 2021. Their upper mid-scale market positioning also means these hotels stand a better chance to return to pre-pandemic performance sooner. In addition, Singha Estate also plans to boost its portfolio efficiency and investment returns with asset rotation strategy by renovating high-potential hotels in order to raise average room rates, using cash proceeds in some disposal of hotels. In this regard, the overall portfolio is able to be gained profit more from the operation.
Investment in industrial estate and infrastructure businesses. This increases the weight of investment in businesses that derive income from the manufacturing sector to diversify the Company’s revenue streams. Balancing income sources from consumer based and industrial based spendings improves the Company’s resilience. The industrial estate Singha Estate has invested in is situated in a 1,790-rai high-potential plot of land in Angthong province, the heart of the high-quality food industry resources area and the main transportation routes of the North and Upper-Central regions for transporting agricultural products. At the same time, Singha Estate has also acquired 30% shareholding in 3 co-generation power plants in the vicinity with a combined output of 400 megawatts, and a firm power purchase agreement with the Electricity Generating Authority of Thailand, totaling 270 megawatts. The investment will generate recurring income for the Company in long term.
Singha Estate aims to deliver S OASIS as Grade A office building project that supports hybrid work model. The project further enhances the effectiveness and flexibility of the new work culture by offering customized workspace solutions, backed by online management system and the Internet of Things technology and equipment to help tenants achieve a healthy work-life balance.
From our achievements in the past year, it’s that Singha Estate has spared no effort to build a solid foundation for our business to shape and sustain new consumer behavior while tapping into each business unit’s potential to generate satisfactory returns. Stepping into 2022, the Company looks forward to building on its growth strategy through diversification of product and investment portfolios, partnerships, and funding sources, for instance, the penetration to low-rise housing market, focusing on widening the market positioning in terms of pricing and customer segmentation. As for the co-working space development under the “Time Sharing” concept to satisfy future office space requirements, we will pursue growth and diversification through integration to generate stable and consistent returns for our shareholders.
I have full confidence that with the key strategies laid out by the Company, a shift towards proactive mindset and the unfailing dedication and support of the Board of Directors, the management team, and employees as well as stakeholders, Singha Estate shall overcome this crisis and emerge stronger than before. Finally, Mrs. Thitima and I would like to thank all shareholders, joint venture partners, suppliers, customers, financial institutions and all related parties for your trust, confidence and support. We would like to take this opportunity to assure that Singha Estate has a sound management plan bolstered by a firm commitment to create value and sustainability as enshrined in the Company’s vision.