Singha Estate, the property arm of Singha Corporation, revealed that it intends to invest THB20 billion in real-estate projects this year with THB1 billion of that budget going to acquire another hotel chain in the UK that has less than 1,000 guestrooms.
“Besides England, we’re also looking for potential acquisition deals for hotels in Germany and Spain,” chief executive officer Naris Cheyklin explained. “We expect the contribution from overseas businesses to soar from 20 percent of total revenue to 30-40 percent in five years.”
The latest announcement comes as no surprise with Singha Estate having expanded its portfolio and presence aggressively over the last few years. Nearly 80 percent of the developer’s budget will be spent on six or seven joint-venture and acquisition deals in various property and related businesses both in Thailand and abroad. These projects are likely to include hotels, industrial estates, logistics, warehouses and shopping malls.
Singha Estate purchased 26 UK hotels that had a combined total of 2,880 rooms for THB8.8 billion in 2015. This year the company will again focus on hotels as well as logistics companies in the CLMV markets of Cambodia, Laos, Myanmar and Vietnam, with a focus on Myanmar and Vietnam.
The developer is looking to acquire or build via a joint venture two industrial estates, one warehouse and two shopping malls in Thailand. The reason for this is Singha Estate’s desire to broaden its portfolio and create more diverse streams of revenue.
“We will diversify our investment to different products and different markets to avoid risks,” Naris said.
As a stand alone developer, Singha Estate builds super-luxury real-estate projects, mainly condominiums but office buildings, retail complexes and housing estates as well. The ESSE Asoke is the biggest project currently under development from the company.
