Raimon Land Public Company Limited (“RML” or “the Company”), Thailand’s leading developer of luxury real estate, announced its plan to boost revenue and liquidity is on track with presales revenue of THB 1.329 billion achieved in the first half of 2020. The Company will continue to focus on strategies to boost revenue and cashflow and expects its full year revenue target of THB 2.5 – 3.0 billion to remain in line.
Mr. Lionel Lee, Chief Executive Officer of RML, said: “While Covid-19 continues to create uncertainties and dampen the purchasing decision of buyers, I remain cautiously optimistic of Thailand’s real estate market when we do emerge from this health and economic crisis. In particular, we are hopeful the Thai Government’s economic stimulus measures, including policies to reduce ownership transfer fee and mortgage fee for home buyers who spend less than 3 million Baht, will enhance buyer confidence and stimulate demand in the second half of the year.”
Demand for residential property from international clients is also expected to gradually return, including clients who are seeking a second home in a country with safe and reliable healthcare, and that has shown it is capable of containing Covid-19 impacts successfully. In addition, Chinese clients have yet to show signs of cancelling their property reservations, as buyers await Thailand to fully reopen its borders and international connectivity to the country to resume.
With the expected, but gradual recovery of the economy for 2H 2020, the Company will continue to focus on its plan and strategies to boost revenue and cashflow for the rest of the year. In the past months, RML has accelerated the release of existing ready-to-move-in condominium units such as The Lofts Asoke,The Diplomat 39, The Diplomat Sathorn, The River and Unixx. Furthermore, the construction of The Lofts Silom is now completed. The customers start to transfer the ownership and move in. The company will focus on sales of The Estelle Phrom Phong, TAIT12, The Lofts Ratchathewi, achieving presales revenue of THB 1.329 billion for 1H 2020.
In addition, RML will double up its efforts in attracting high-end clients living in Thailand and will redesign homes under the theme “Design for Living” to add more functionality and mixed-use living spaces. Innovative marketing channels including RML’s O2O (Online to Offline) portal will continue to provide virtual tours and access to potential clients. The longer-term demand for property investments as a second home, a legacy or a personal asset is also expected to continue and RML will remain innovative and client-centric to ensure all projects serve our clients’ lifestyles and expectations of luxury living.
Nevertheless, the Company will continue to practice prudence when looking at new projects in the current environment. This year, the Company has suspended the launch of one new luxury condominium project located on Sukhumvit 38, worth more than Baht 7 Billion, due to the unconducive residential property market. The Company has revised its investment plan in line with the recovery of the economy and return of buyers’ purchasing power.
Regarding the recurring income business, the Company plans to launch KITCH HOTEL during the end of 2020, with a new “Never Hungry Concept” under the theme “Welcoming Friends Home”. The hotel’s restaurant section will open in the first phase, which will focus on the domestic market. The second phase of opening will coincide with Thailand’s reopening of borders and will target international, Chinese and Asian travelers who are interested in our unique Thai food and culture.
For the Food and Beverage (F&B) business, RML is in the midst of recreating a new strategy for its F&B franchise Baan Ying to introduce new concept of Thai food , focusing on affordability, practicality and the “new normal” of work and lifestyle of target consumers. The Company expects its full year target revenue of THB 2.5-3.0 million to be in line.