21 March 2022

Singha Estate announces strategic move to push a 2022 revenue to a new high at THB13.4billion, Escalating future growth through partnership strategies across all portfolios, growing 25% CAGR in 5 years

BANGKOK – 21 March 2022 -- Singha Estate Public Company Limited today unveils the company’s 2022 business direction with a positive outlook in doubling the YoY growth to a new high at THB13.4billion through well-diversified portfolios, as well as collaborating with strategic partners to strengthen the 4 well-established core businesses. Singha Estate also announces its vision to grow 25% CAGR within 5 years by exploring new business opportunities that respond to megatrends and complimenting the synergy across existing businesses and enhancing strategic partner collaboration for strategic growth.

Thitima Rungkwansiriroj, Chief Executive Officer at Singha Estate PCL said, “Our focal strategies during the past 2 years have been to diversify our investment across all 4 core and connected businesses. The strategic move has led to a satisfactory, stable stream of revenue. In 2022, we continue to be even stronger, both in terms of revenue and financial stability, through projects in the pipeline, joint-venture projects, as well as having a long-term lease of premium assets with SPRIME. We, therefore, expect 2022 YoY revenue to double the performance of 2021, where we were able to reach THB7.74billion, at THB13.4billion.”

Double growth across four core businesses to a new high at THB13.4billion

Through the well-diversified investment strategy, Singha Estate will be able to expand the growth of its businesses across all portfolios with the expected revenue of THB13.4billion. Around 25% of total revenue will be generated from the residential business, 8% from commercial business, another 4% will come from the industrial estate and other businesses, while another 63% will come from the hospitality business.

Around 50% of the revenue of the Residential Business is expected from the transfer of two ready-to-move-in condominium projects, The Esse at Singha Complex and The Esse Asoke, and the luxury housing project “Santiburi the Residences”, whose backlog is at THB2.6billion. The company expects to recognize around 70% of the backlog as revenue this year. In addition, Singha Estate has a plan to launch another housing project, worth THB2.9billion, located in the Patthanakarn area by the second half of this year. The new project’s revenue is expected to be recognized within 2022.

For Commercial Business, there will be an official launch of S Oasis, the new premium office building with retail spaces in Lad Phrao district with approximately 55,700 square meters of total space. Singha Estate expects around 50% occupancy rate at the year of the launch. Moreover, the company plans to relaunch S Metro, the prime office building in the Phrom Phong area.

The Hospitality Business has seen exponential growth since last year and is expected to grow 88%, generating revenue of THB8.5billion, moving the company up to become the no. 2 hotel operator with the highest revenue. The growth has been a fruit of the well-diversified strategy, which allows the company to have properties in the key travel destinations around many regions of the world, particularly in the world’s major growth engines such as the UK and The Maldives. Regardless, there is also an upside growth potential if the tourism and hospitality business comes faster later in the year In addition, the company has continued to develop and renovate high potential properties through asset rotation, upgrading the services and offerings to cater to more diverse targets e.g., adding pool villa-type accommodation in the Maldives properties to respond to the demand of guests from the Middle East. As a result, the company is able to increase the average daily rate (ADR) to 10-20%. Once all renovation is completed, the company expects a 40% increase in profit.

The industrial estate business: The business is ready to start recognizing the income for the first time in 2022 through sales and land transfer after the company spent last year investing and developing the land, utility system, and infrastructure. Singha Estate expects to transfer 15% of the 992 rais of the total area of the industrial estate.

Boost up financial strength through JV & REIT

During the past years, Singha Estate announced several partnerships to enhance the investment capability and project development across all business portfolios e.g., the partnership with Hong Kong Land for higher outreach to potential foreign buyers in the ultimate-luxury condominium project The Esse Sukhumvit 36, valued at THB5.9billion, and the joint venture project with Wai Eco World Developer (WEWD) to develop the 80 luxury villas at SO/ Maldives, the newest addition of to the two existing resorts at the Crossroads Maldives, aiming to cater to more diverse guests in the diverse price range.

Also, Singha Estate has planned on a long-term lease agreement of three premium office buildings and retail space with S Prime Growth Leasehold Real Estate Investment Trust (SPRIME), following the company’s asset portfolio management strategy, which will focus on capital recycling to strengthen its financial positioning and to support consistent business expansion. The move will uplift SPRIME to the no. 1 position in Office Real Estate Investment Trust.

Since the end of 2021, Singha Estate has invested in the industrial estate and infrastructure business and holds a 30% ownership of B.Grimm Power (Angthong) 1 Limited., operating a 123 MW combined cycle co-generation power plant; and in 2022, the company will be able to recognize the revenue from the first full-year performance. Moreover, the company has two joint venture projects in B.Grimm Power (Angthong) 2 Limited and B.Grimm Power (Angthong) 3 Limited, to operate the cycle co-generation power plant with a total of 280 MW, which is expected to start the Commercial Operation Date (COD) in 2023.

Escalate future growth to respond to market demands through internal synergies and partnership

Thitima also revealed the company’s vision and business direction in the next 5 years that Singha Estate will put its efforts in leveraging the strength of the 4 well-established business pillars to create an internal synergy that leads to new business opportunities that strengthen its business portfolio, as well as answering to the market demands.

“In order to maintain Singha Estate’s position as one of the leading developers in Thailand that successfully combines comprehensive real estate business and the connected businesses, we have closely studied the trends of the market landscape and the changing lifestyle of people post-new normal era that we lived in during the past 2 years. We have seen opportunities and are creating new business models that will strengthen our potential and our business portfolio in the future. At the same time, we have been leveraging the strength of the 4 well-established business pillars in order to build internal synergy. But these opportunities, we no longer want to walk alone. It has been proven to us that building on the strength of our partners in different areas has enhanced greater success. We are, therefore, looking into collaborating with potential partners in various fields to achieve the market demand and differentiate our unique offerings. With the efforts, we expect to expand our business further in the next 5 years to a 25% CAGR,” said Thitima.