Property development / Healthcare

Ediorial staff

Pruksa Holding Plc, the country's leading property developer, will develop 30 new residential projects valued at 29 billion baht this year, but will shift to mid-high segment to better align with the current economic condition and market demand.

Uten Lohachitpitaks

Uten Lohachitpitaks, group chief executive officer, said that the company will spend 14 billion baht to expand its business in 2024. Of the total, 10.5 billion baht will gear toward the purchase of 32 new plot land for future expansion and develop its projects, while the remaining 3.5 billion baht will be used to expand its healthcare business.

For real estate business, the company will develop 10 detached houses, 17 townhouses and 3 condominium projects.

Piya Prayong

Piya Prayong, CEO of Pruksa Real Estate Plc, said that the property market was worth 380-390 billion baht in 2023, driven by detached house, which grew by 31% while townhouse business grew at the lowest rate of 26%. Therefore, the company will adjust its investment portion of real estate busines, reducing the portion of townhouse with prices less than 3 million baht to be 40%, compared to around 70% in 2019, while the portion of mid-high townhouse segment priced over 7 million baht, would be over 30%.

“This is the big ever adjustment of our expansion portion in our group,’’ Mr Piya said, adding that to strengthen its portfolio, the company will enhance The Palm brand's value proposition and increase the price range to over 30 million baht. It also collaborates with the healthcare business within the group for a more comprehensive approach, alongside efficient asset management.

The Palm

As for the healthcare business, Pichit Kangwolkij, M.D. Deputy Group CEO of Pruksa Holding Plc, and acting CEO of ViMUT Hospital Co, disclosed that the ViMUT Group has experienced growth in all dimensions, with total revenue of 1.82 billion baht, representing a 50% growth from the previous year.

ViMUT HOSPITAL

For the year 2024, ViMUT Group aims for a revenue target of 2.3 billion baht and plans to rebrand Theptarin Hospital as "Vimut Theptarin Hospital," with the unveiling scheduled for April. Furthermore, in collaboration with K.P.N. Senior Hospital Group, which specializes in elderly care and provides holistic solutions for elderly care, ViMUT Group plans to manage nursing homes in the Bangna, Bearing, and Watcharapol areas, totaling 240 beds. There are also opportunities to manage an additional 5 nursing homes. The goal is to expand the total number of beds served to 600 beds within 3 years, along with continuing the construction of a new ViMUT Hospital in Sukhumvit area as well as in Thonburi.

‘’With the business model adjustments and organizational restructuring in the past year, we believe Pruksa Holding, along with all companies under its umbrella, is ready to move forward,’’ Mr Uten said.

Pichit Kangwolkij

The benefits gained from the restructuring of the organization this time include: (1) Scale benefits in procurement, delivery and fulfilment to unlock value in our project (2) Increase cross-selling opportunities to enhance scope for customer’s lifetime value (3) Leverage scale of platform’s benefit to drive additional income towards 25% recurring income target over the next five years, from this year of 9%.

In 2024, the group's total revenue target is set at 28 billion baht from four business group including real estate, healthcare, e-commerce and others, up from 26.13 billion baht last year.