BTS Group Holdings is re-organising its property business to support a new five-year residential development plan worth THB100 billion according to local media reports. The new plan will see the mass transit operator expand its commercial property interests as well as restructure its property business.
The company hopes it can increase its real estate revenue from 10 percent to 15 percent of its total income in two years time. Property currently represents nine percent of the group’s total revenue with mass transit bringing in 43 percent and its media and services offerings accounting for 48 percent of all income in the first quarter of this year.
The property business is made up of residential development for sale through its joint venture with Sansiri as well as commercial properties including golf courses, rental office space and hotels that will generate recurring income.
“The group will become a holding firm and will play down direct investment,” BTS chief operating officer Rangsin Kritalug explained to the Bangkok Post. “We will invest in the property business through subsidiaries totalling over 30 companies.”
BTS unveiled plans to invest THB2.7 billion in its property interests this year with THB1.2 billion being set aside for land acquisition, THB1 billion used for residential business and THB500 million going towards the renovation Thana City Golf and Sports Club.
The Sansiri-BTS joint venture has already launched four condo projects worth a combined THB13.6 billion under The Line brand with The Line Sukhumvit 71, The Line Jatujak-Mochit and The Line Ratchathewi set to be completed by 2018.
TST Tower, near the Mor Chit skytrain station, is also owned by the BTS Group. The newspaper reported that it is developing U City Phayathai, a mixed-use development on Phaya Thai Road that will feature office space, a hotel, serviced apartment units and retail space. BTS already owns three hotels operating under the U Hotel brand. These are located in Chiang Mai, Kanchanaburi and Bangkok.
Image: The Line Asoke-Ratchada, one of condo projects developed under the Sansiri-BTS joint venture.
