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 2020, the Company and its subsidiaries, in which the Company holds 99.99% of shares, have developed 5 residential projects, consisting of 4 high-end condominium projects, i.e. The ESSE Asoke, The ESSE at SINGHA COMPLEX, EYSE Sukhumvit 43 and The EXTRO Phayathai-Rangnam, and 1 ultra-luxury single detached house project, Santiburi The Residences. In addition, the Company has invested in a joint venture company with a prominent real estate development company in the region, to develop another condominium project named The ESSE Sukhumvit 36.
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.
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 62.24% 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 2020 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
The Company’s decision whether to develop or invest in commercial projects depends on the suitability of location, restrictions on development or expansion of the project, local supply and demand, return on investment and growth potential. At present, the Company has four commercial projects under its management, i.e. 1) The Lighthouse, a compact retail building which is a legacy project developed by Rasa, 2) Sun Towers, office buildings which the Company acquired through an entire business transfer in August 2015, 3) Singha Complex, an office building developed by the Company and commenced its business operation in October 2018, and 4) Metropolitan, an office building which the Company acquired in January 2020. (For more details, please see topics ‘2020 projects’ and ‘Future projects’)
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.