Singha Estate announced that it plans to integrate industrial estates, power generation, engineering services and other related businesses into its property operations as it looks to triple annual revenues over the next three years. The firm believes the strategic broadening of business will allow it to better capture new opportunities.
“The emergence of many extra-large-scale development projects in Thailand and Singha Estate’s integrated approach that combines hospitality, residential, commercial and industrial property development with power generation and related innovative services and businesses will give Singha Estate unrivalled advantages in capturing some of these huge, new opportunities,” Khun Thitima Rungkwansiriroj, Singha Estate Chief Executive Officer, said.
The developer has decided to structure and balance its business across four, connected platforms in order to secure dependable returns after a year filled with uncertainty. Last year, three of Singha Estate’s business platforms–commercial property, residential property, and resorts and hotels–accounted for 96 percent of core revenues.
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“We now wish to ensure that our fourth platform–new businesses that complement our core property businesses–may contribute a significantly greater amount,” Khun Thitima noted.
She continued, “Our ‘Four Platform’ approach makes us unique and opens up much wider commercial opportunities than would be possible as a pure property development company. It also gives us greater competitiveness through complementarities, commonalities and integration, as well as greater stability through portfolios that have different business cycles, different risk profiles, and an ability to generate recurrent income.”
According to company figures, Singha Estate has 140,000 square meters of commercial office and retail space that contributed approximately 15 percent to total revenues in 2020. Meanwhile, its hospitality business, which consists of 39 hotels in five countries, was responsible for 24 percent of revenue. Singha Estate also has 23 residential development projects under various brands which contributed to 57 percent of revenues last year.
No details on how the firm plans to integrate industrial estates, power generation, engineering services and other related businesses into its property operations have been made available.