Singha Estate was founded on 14 August 1995, under the former name of “Panichpoom Pattana Company Limited”. The main objective was to engage in property development for housing estates and condominiums. The Company later underwent a name change to Rasa Property Development Public Company Limited (“Rasa”), with listing on the Stock Exchange of Thailand (SET) since 12 April 2007, under the “RASA” ticker symbol.
Then on 12 September 2014, the Company completed its business integration, by way of entire business transfer, with group of companies under the Singha Property Management Company Limited, and Mr. Santi Bhirombhakdi. The shareholding structure also underwent change: Singha Property Management (in which Boon Rawd Brewery Company Limited holds 99.99% shares) and Mr. Santi Bhirombhakdi became the major shareholders. On the same day, its name changed to Singha Estate Public Company Limited, which changed its ticker symbol on The Stock Exchange of Thailand from “RASA” to “S”.
The transfer formed up the new business plans and the reorganization of business operations and steady expansion. Currently Singha Estate conducts three types of business as illustrated below.
The Company aims for a variety of residential property ranging from single detached houses, townhomes, home offices to condominiums. Every project is designed to match the needs and lifestyles of middle-tier to upper-tier markets, segmented by different brands under diverse management structures. Starting from seeking for and securing lands with high potentiality and suitability to our development plan, Singha Estate then thoroughly studies the project feasibilities, plans and proceeds with the design and construction management, sales activities and provide the after sales services.
In 2019, the Company and its subsidiaries have developed 5 projects where we have 99.99% shareholding, consisting of 4 luxury condominium projects, i.e. The ESSE Asoke, The ESSE at SINGHA COMPLEX, EYSE Sukhumvit 43 and The EXTRO PhayathaiRangnam, and 1 ultra-luxury single detached house project - Santiburi the Residences. Besides, another project called The ESSE Sukhumvit 36, a condominium project under joint venture arrangement where Singha develops in collaboration with a prominent real estate development company in the region, is well underway.
Apart from these projects, Nirvana Daii Public Company Limited (NVD)5, a subsidiary company which Singha Estate holds 51.56% of the shares, operates the property development and construction business. NVD’s main sources of income derives from residential property development (15 housing projects and 1 condominium project) and services of house construction contractor and sale of construction material of a particular type.
Core business consists of the followings.
- Condominium development targeting the luxury2 and super luxury3 market and housing project targeting the luxury4 market
- Hospitality business
- Commercial and retail business
- Property and hospitality service
Core business consists of the followings.
- Condominium development targeting under the luxury2 market and low-housing project, for example, single detached houses, townhome, and home offices which target below the luxury4 market
- Construction and home builder
- Construction material manufacture and distributor
- 1 Excluding NVD and its subsidiaries
- 2 The price range for condominium projects targeting the luxury is between THB 200,000 - 300,000 per square meter.
- 3 The price range for condominium projects targeting the super luxury is over THB 300,000 per square meter.
- 4 Housing projects targeting the luxury market are the land with structure selling over THB 100 million per unit.
- 5 As of 6 January 2021, Singha Estate disposed all of its investment in Nirvana Daii PCL or “NVD”,eliminates previous concerns on conflict of interest between itself and NVD and is regarded as a crucial steppingstone for Singha Estate to advance its residential business portfolio by covering variety of products and segments.
As one of the Company’s core business, the hotel business and the hotel management business have featured leapfrogging growth after business restructuring. The Company’s policy is to grow this business through joint investments and acquisitions. The key considerations consist of location, supply and demand, asset quality, management team, returns on investment, and growth potential, in terms of occupancy rate, room rate, and opportunity for room expansion. Revenues from this business are revenue from room, food and beverage income, and other service fees. SINGHA ESTATE PUBLIC COMPANY LIMITED ANNUAL REPORT 2019
Currently, Singha Estate group has invested in the total of 39 domestic and international hotels, under the operation of S Hotels and Resorts Public Company Limited (SHR), another subsidiary in which Singha Estate holds 60% of shares. SHR has pursued an investment strategy that spreads the risk springing from the seasonality of the hotel business by considering locations and different tourist target groups to ensure continuity of business revenue. (Please see further details in the 2019 Annual Report of SHR.)
Another core business is the commercial property business, including retail space and office space for rent. This high growth business generates recurring income with high returns on investment to the Company. To expand this business, the Company focuses on greenfield development and asset acquisition. The revenue from this business mainly derives from space rents, common-service charges for utilities, security systems, and other service fees, including the revenue from managing asset under REIT
In development and investment, by and large the Company considers location suitability; limitations for project development or expansion; supply and demand in the vicinity; returns on investment; and growth potential. Presently, the Company operates 3 commercial properties, namely, Lighthouse, a compact retail building developed by RASA, Suntowers, office building acquired thru the entire business transfer in August 2015, and Singha Complex a mix-used complex commercially operating in October 2018. (Please see further details in Current Projects and Future Projects section.)
Apart from the aforementioned business, the Company group also offer a property service providing, which, together with the hospitality business. These support very well to the property development part as they can be incubated by the same qualify and skillful executive and staff team with the aim for the recurring income generated to the Company. The property service providing offers the consultation on the property and/ or hospitality project either for the preliminary and/or during developing stage, the feasibility study, market survey, project design, development plan, design and construction control, selling administration and even integrated project management.
To segregate NVD’s business scope from Singha Estate’s in order to preclude the conflict of interest and to make the most of each entities’ capability, the Company issued the clarification on NVD and its business scope as the following.