Thailand’s SET-listed Sena Development plans to branch out into warehouses, serviced apartments and asset management, while planning 49 new residential projects
SET-listed Sena Development plans to branch out to warehouses, serviced apartments and asset management, while planning 49 new residential projects worth a combined 27.5 billion baht in 2022.
Managing director Kessara Thanyalakpark said the company wants to diversify to other businesses this year to increase stable revenue from recurring income.
Most of the new ventures are related businesses that can support property development, said Ms Kessara.
“Warehouses will be the first one we want to invest in, as demand is growing during the pandemic,” she said.
“We are interested in serviced residences in which we will co-invest with Japanese developer Hankyu Hanshin Properties Corp.”
About 1 billion baht is an investment budget for new businesses Sena will invest in this year. It will also include asset management under SK Asset Management Co and personal loans for home purchases under Power Cash Co — a business it was incubating.
Others will be in the wellness business, partnering with medical professionals to provide healthcare services and financial services for homebuyers.
“We will spin off those businesses which are sizeable and help them raise funds through an initial public offering,” she said.
After buying a 24.16% stake in MAI-listed housing developer J.S.P. Property Plc (JSP) last year and becoming its major shareholder, Sena is bullish on the residential development business.
It plans to launch 49 new projects worth a combined 27.5 billion baht, compared with 12 projects worth 10.2 billion last year.
The new projects will comprise 21 condo projects and 28 low-rise housing projects.
As a result, it will have a total of 90 projects with remaining units available for sale worth a combined 52.6 billion baht, up from 41 projects worth 25.1 billion as of December 2021.
“The JSP acquisition will help us expand into low-rise houses in new locations where we have never been, such as Ratchaphruek, Bang Bua Thong, Chachoengsao and Sri Racha,” said Ms Kessara.
The firm’s condo portfolio, which is Sena’s main segment, will decline to 60% from 80% last year, while that of low-rise houses will rise to 40% from 20% after the strategic takeover.
It aims to have 14 billion baht in presales, nearly 2.5 times higher than the 5.6 billion posted in 2021, which comprised 2.7 billion from its own developments and 2.9 billion from joint ventures with Hankyu Hanshin.
Sena targets transfers of 12.2 billion baht this year, up from 5.71 billion last year, which comprised 2.37 billion from its own developments and 3.34 billion from joint ventures with the Japanese partner.
Source: https://www.bangkokpost.com/business/2273571/sena-plans-to-branch-out-into-warehouses
