Siamese Asset banks on diversification
Property developer Siamese Asset Plc is diversifying to property-related businesses to gain more recurring income and add value to its residential development.
The new ventures will comprise food and beverage, a cloud kitchen, and a serviced residence and wellness centre added to its condo projects, said chief executive Kajonsit Singsansern.
“The new businesses will increase the attractiveness of our condo projects, which target both investment buyers and real demand,” he said.
For the food and beverage business, the company opened two branches of
Kafeology, its own coffee shop brand, at two condo projects.
It also opened Rosemary restaurant in the Ram Intra area, where last month it generated a profit of 400,000 baht.
This year it plans to launch four branches of its cloud kitchens in four projects in the Sathon-Charoen Rat and Sukhumvit areas, where six restaurants signed on to join.
“We are in talks with partners in the wellness business,” said Mr Kajonsit. “Cafes and restaurants, a cloud kitchen and a well-being centre will be located in rental spaces at our condo projects.”
This year the company is starting to gain more recurring income and hopes to increase this segment to 5-10% of total revenue over the next few years.
He said the company will launch only one mixed-use property on a five-rai plot in Ram Intra in the fourth quarter.
The project, with a sales value of 4-5 billion baht, will comprise three highrise towers of hotels and condos for rent targeting investment buyers and real demand.
The company has one condo project with some units operated by a hotel chain with a hotel licence — Exclusive Queens on Soi Phai Singto — near Queen Sirikit Convention Center MRT station, where 99 units owned by the company are operated by Wyndham.
There are three new condo projects expected to use this model, comprising Siamese Sukhumvit 48, Exclusive 42 and Siamese Sukhumvit 87, which are now seeking hotel licences.
The idea of packing a condo with hotel operations that Siamese Asset introduced requires specifications and facilities to obtain a hotel business licence under the Hotel Act. All unit buyers are required to sign a consent letter when booking a unit to allow a hotel licence for the project.
“This concept will cut concerns about illegal daily or weekly rental for investment buyers, a growing business,” said Mr Kajonsit.
By year-end, Siamese Asset expects 5-6 billion baht in revenue.