REAL ASSET moves forward in the real estate market in 2023, launching both high-rise and low-rise projects totaling 4 projects with a total value of over 5.9 billion baht. It prepares to launch new brands “Arlo Lasalle 17” and “VIVALDI Bangna,” while adjusting its growth strategy to move faster by aiming to expand into M&A-style projects and Recurring Income projects to strengthen the company’s cash flow. It expects to set a New High record in 2024 with revenue reaching 7 billion baht. In addition, it increases its business strategy by joining hands with a major partner from Japan, “SOTETSU,” to continue investing over the next 3-5 years.
Mr. Bodintorn Juangroongruangkit, Chief Executive Officer of REAL ASSET Development Co., Ltd., or REAL ASSET, a real estate development company that has developed more than 20 projects including detached houses, twin houses, townhomes, home offices, and condominiums, revealed the company’s operating plan for 2023. He stated that the company plans to launch 4 new projects with a total value of over 5.9 billion baht, including both low-rise projects and high-rise projects, or condominiums, targeting the middle to upper market segments. These projects will be developed both through the company’s own project development and through M&A, or Mergers and Acquisitions. The company is also looking for opportunities to expand into project development in the hospitality business group and the retail and commercial building real estate business group in order to strengthen the company’s cash flow and create continuous growth.
For low-rise projects, the company plans to launch a total of 2 projects in the second half of the year:
1.VIVALDI Bangna, located around Soi Wat Khlong Palat Priang, only 1.8 kilometers from Bangna Road, is being developed as a new detached house brand that is preparing to raise standards to better penetrate the Hi-End Segment of low-rise projects. The selling price starts at 10-20 million baht, with a project value of over 1.3 billion baht.
2.VIRANYA Rangsit - Wongwaen is a detached house project on the Wongwaen - Lam Luk Ka Khlong 5 location, with selling prices starting from 3.XX million baht and a project value of over 1.25 billion baht.
As for condominium residences, the initial plan is to launch 2 projects:
3.THE STAGE made by me Ratchada - Huaikhwang is being developed as a high-rise condominium, 31 floors high, on the Ratchada - Huaikhwang location. The project value is approximately 2.13 billion baht, with prices starting from 2.89 million baht. It is planned to open for first-round sales through Online Booking on April 3.
4.The new brand under the project name Arlo Lasalle 17, formerly The Excel Lasalle 17, is a low-rise condominium consisting of 4 buildings on land of over 4 rai, with 581 residential units and a project value of 1.24 billion baht. This project is considered one of the company’s M&A-style strategies, helping reduce the project development period and generate returns faster. It is an acquisition of land and existing buildings with potential for further development in order to create leapfrog growth. It is currently under construction and is expected to be completed by the end of this year, with ownership transfers possible in early 2024. It will open for sale in the third quarter of 2023.
In addition, the company has also made a joint investment with Sotetsu Real Estate, or SOTETSU, which is part of the Sotetsu Group. The group operates railway and bus businesses, real estate businesses, supermarket businesses, and hotel businesses, mostly in Yokohama, Japan, and has approximately 70 years of experience in residential development. Currently, it has jointly invested in A Space Mega, THE STAGE Mindscape Ratchada - Huaikhwang, and VIVALDI Bangna, and also has a goal to jointly develop new projects together in the future. The company believes in SOTETSU’s long-accumulated experience, which will help elevate housing through design, functions, innovation, and sustainability.
The company believes that the housing market still has a direction of growth and that consumers still have demand, because housing is one of the four basic necessities for living. At the same time, however, it also acknowledges that the real estate business sector still faces negative factors that must be carefully monitored.
In setting business policies, whether it is the trend of rising interest rates, rising land cost prices, or construction material prices that are also trending upward, all of these factors have both direct and indirect effects on the business. Nevertheless, there are still positive factors coming in to support and positively affect the overall economy, various businesses, and the Thai tourism sector, which will become active again, as well as the reopening of the country, which has begun to bring tourists back into Thailand.
“The company targets, within 3 years from 2023-2025, to develop projects totaling over 14 billion baht in order to create a balance of revenue between revenue from transfers and Recurring Income. Within 3 years, the company aims to generate Recurring Income from the development of 3 projects with a total project value of 1.7 billion baht. In 2022, the company achieved total sales of 2.288 billion baht and set a sales target for 2023 at 3.47 billion baht, growing by more than 50% from the previous year. The company has also planned an aggressive policy from the development of low-rise and high-rise projects, from newly launched projects and projects that are continuously under sale. This will result in sales and revenue growing by leaps and bounds. Over the next 3 years, from 2023-2025, the company has a project development plan, with a sales target set at 4 billion baht per year. As for revenue, it will start to become clearer in 2024, when it is forecast to reach 7 billion baht, which will be a New High record for the company. The company currently has a backlog supporting revenue recognition of approximately 4 billion baht and expects to generate additional backlog during this year and the following year totaling another 2 billion baht to support future transfer plans,” Mr. Bodintorn said.
