Raimon Land Public Company Limited (“the Company”), Thailand’s leading developer of luxury real estate, announced plans to diversify and strengthen its business to ride through the Covid-19 impacts. This includes a new business product line to offer investment and rental opportunities for its suite of service apartments and luxury condominiums, as well as targeted strategies to boost revenue from its Food & Beverage business. The Company has also planned to move forward with a new luxury condominium project on Sukhumvit 38.
Mr Lionel Lee, Chief Executive Officer of Raimon Land, said: “The outbreak of Covid-19 has dampened the domestic and global economic outlook for 2020 – which will adversely impact the real estate market in the short to medium-term. While our priority is to ensure the well-being of our staff, investors, and customers during this difficult period, we will not lose focus on what needs to be done in terms of diversification and building resilience to withstand the impact of Covid-19, and emerge stronger from this crisis.”
Protecting our core residential business
To protect our core residential property business and capture opportunities amidst the crisis, the Company is launching a new business product line that involves rental property investments, that will be managed by Klapsons The River Residences Bangkok. The rental property investments – including The Lofts Asoke, The Diplomat 39, and The Diplomat Sathorn, provide a good opportunity for medium to long-term investors to invest in properties that provide rental income and at the same time, are expected to appreciate in value when the market recovers. Additionally, record low interest rates, Government’s policies to boost the property market and Bank of Thailand’s decision to ease the LTV will allow investors to invest at cheaper rates. The Company expects good response from investors.
To further stimulate demand and boost sales volumes, the Company is also introducing an online channel through O2O (Online to Offline) commerce, which enables customers to view the luxury residential units online anytime and anywhere, before visiting the projects of their choice. The O2O channel will give our customers added health safety as they engage us from online through to offline during this sensitive period.
The Company will continue to move forward on a planned development of an ultra-luxury condominium on Sukhumvit 38. This will be the third joint venture project with our long-term partner, Tokyo Tatemono, one of the oldest and most established Japanese real estate companies.
Adjusting our recurring income portfolio
In view of the tremendous Covid-19 impact across the global travel and hospitality industries, the Company will postpone the opening of Hotel KITCH, originally scheduled in April 2020, to the second half of the year. However, the Company remains confident of its pipeline of hospitality developments over the medium to long-term. The Hotel KITCH is an in-house managed 72-room hotel that will accommodate the lifestyle of gastro-tourists. Plans are also in place to open another 300-room hotel in Sukhumvit, with a modern, technology concept.
To manage the risk of its Food and Beverage (F&B) business, the Company is currently holding a strategic review of the Baan Ying restaurant franchise. Additionally, the Company is currently studying the possibility of a F&B joint venture with potential partners. More details will be released when the plans are finalised.
Building resilience through this crisis
The Company’s backlog as of end 2019 stood at THB 8,010.5 million and the Company expects revenue to be gradually realised from 2020 onwards. One of our major projects, the Loft Silom, is over 80% sold and has been undergoing ownership transfer since the start of the year. The Company will also continue its investments in strategic marketing and build Raimon Land’s brand across our domestic and international customer base.
Mr Lionel Lee added: “We have a strong backlog of projects and we stand ready to move forward on the right opportunities, while actively managing our business portfolio and building resilience through this crisis. As a Company, we are keeping our spirits up and coming together with our partners, investors, and customers to pull through this period of uncertainty.”