Sena Development Plc

Editorial staff

Nobody expects unprecedented situations like Covid-19 pandemic would take place and take its toll on human and business lives worldwide. It is a good lesson for the business community. However, risks remain visible currently with different forms of problems, from both internal and external.

But for Kessara Thanyalakpark, managing director of SET-listed developer, Sena Development Plc, shrugs off risks. Her collective experience from hardship makes her even tougher. Also, it has taught her survival skills to secure its future.

“If we don’t know what will happen in the future and we can’t change this world. Then, we have to understand it and change the way we thought,” she said.

Implementing this way of belief through the three-year hardship of the Covid crisis, it is fruitful and more sustainable for her company. Total asset size growth increased by 37% from 37.3 billion baht in 2020 to 51.23 billion baht in the first nine months of last year along with the net IBD/E ratio of 1.13, the lowest in the past four years,'' Ms Kessara said.

She adds that there are many factors to change her thought. One of them is the reading of ‘'Unconventional CEOs'', one of the books recommended by Warren Buffett.

''Two important ideas we got from this book are the proper capital allocation and put focus in cash flow from operation more than focus on making profit in short term,'' Ms Kessara said, adding that if Sena wants to survive the uncertain environment, it is essential for the company to diversify its portfolio from residential to property management and others. Currently, 80% of revenue stems from condominium and the remaining 20% from services, rental and others.

“Covid-19 is the company’s turning point of our strategy. We have no longer invested by our own but have spreaded its investment via partnership to make proper capital allocation,” she said.

Sena joined hands with Hankyo Hanshin Properties Corp (HHP) to co-develop new projects. This boosts its asset size growth by37% from 37.3 billion baht to 51,23 billion baht in the first nine months of 2023.

''Focusing on partnership strategy is not about money matter, but it’s about knowledge sharing, minimize risks and reduce our investment in order to make our net IBD/E ratio decline,’’ she said, adding it helps the company to manage properly our portfolio and increase our product’s variety to cover all segments, fitting to market situation and respond to demand in term of location, price as well changing lifestyle.

Ms Kessara adds that the company has an asset value of 82.75 billion baht for future development. Of the total, 72% will be developed via the joint venture scheme, via Sen X Plc 13% and 15% belongs to its own projects.

In addition, the company plans to develop around 10 property projects this year. The project with price- range between 1-2 million baht has showed a potential. A new business model of residential project will be launched in the next 2-3 months.