Property/ RML

Editorial staff

RML announced 2023 resilient results and 2024 plans to launch 3 new low-rise ultra-luxury projects.

SET-listed Raimon Land Plc (RML), a country's property developer, reported resilient performance in 2023, with presales accounting for 1,912 million baht, driven by the swift uptake of two ultra-luxury properties, 'The Estelle Phrom Phong' in the heart of Sukhumvit, with all 146 units sold out, and 'Tait Sathorn 12' in the heart of Sathorn, achieving an exceptional sales rate of 98%.

Additionally, revenue streams were diversified through 'OCC' (One City Centre), Thailand's tallest Grade A+ luxury office building, currently sustaining an occupancy rate of approximately 70% for office and retail spaces. The company is ready to move forward in 2024 with new strategic direction to cope with changing business climate.

Despite unprecedented challenges in 2023, RML has remained stable and managed to sell out

'The Estelle Phrom Phong, jointly developed with Tokyo Tatemono, amassing a transfer value of 4.75 billion baht, accounting for 97% of the total units ready for transfer. Additionally, 'Tait Sathorn 12' contributed significantly to revenue, with a transfer value of 2.4 billion baht, representing 55% of the total units ready for transfer.

Furthermore, new income streams were contributed by 'OCC,' Thailand's tallest Grade A+ luxury office building boasting a current office and retail space occupancy rate as well as customer interest of approximately 70%. This underscores the unwavering trust of customers in RML's brand, founded on a steadfast commitment to delivering projects of unparalleled quality and global standard.

The company’s plan is to emerge stronger and more approach in 2024 by announcing a capital increase of 3.59 billion baht for developing new projects in this year and driving constant revenue and profit growth.

Korn Narongdej

Korn Narongdej, chief executive officer of RML, revealed that the company's resilient performance in 2023 underscored the persistent demand within the luxury and ultra-luxury real estate markets, therefore in 2024 RML is ready to move ahead with a new strategy that will drive the business forward, along with stable income for the company, focusing on developing projects with new business models which will definitely create a new sensation for the Thai real estate industry.

Also, the company will focus on investments and give consistent returns along with managing the company's finances to have sufficient cash flow and liquidity. The company will right size the organization for more efficient business operations and maintain the position of number 1 developer of luxury and ultra-luxury real estate businesses. This will transform RML towards sustainable growth in the future.

In 2024, the company aims to generate consistent income through coupled with the occupation of the remaining rental space of the 'OCC' building, which is the tallest Grade A+ luxury office building in Thailand. OCC is a 60:40 joint venture between RML and Mitsubishi Estate (Thailand) which has a total leasable space of approximately 61,000 sq.m. with an average rental rate 1,500 baht/sq.m.

Currently, there is an occupancy rate for office space and retail space approximately 70% after the project was completed only 6 months. It is considered a good success and generating good income for RML. Companies that have signed contract to lease office space at ‘OCC’ ranged from world-renowned companies such as The Boston Consulting Group (Thailand), a world-class consulting company; BNP Paribas, the 8th world’s largest French bank; Amadeus Asia, a global travel technology company; Marubeni, a leading Japanese conglomerate with diversified businesses covering 8 main industries; and a number of companies from Mitsubishi Group, another Japanese conglomerate, etc.

This indicates that 'OCC' is an office building trusted and highly esteemed by many world-class companies, resulting in good rental income.

Moreover, there is also potential for developing ‘OCC’ into a Private Equity Trust (PE Trust) or Real Estate Investment Trust (REIT) with a good rental yield, as recognized by a certain regional financial institution for its outstanding potential and return on investment. A successful PE Trust or REIT development would further strengthen the company's financial status.

In addition, the company will increase the proportion of low-rise projects that are rare to find in the market, despite the ever-growing demand targeting billionaire customers. The company plans to launch three low-rise ultra-luxury projects. These include a project in Phrom Phong – Thonglor, project value 3 billion baht with an average selling price of 400 – 700 million baht per unit, and a ultra-luxury branded residential villa project on Kamala Bay, Phuket, project value 12 billion baht with an average selling price of 600 million – 1 billion baht per unit, including a low-rise ultra-luxury project on the Chao Phraya River with expected value of 1 billion baht per unit.

All projects will be funded by a special purpose fund set up by the company with the company as the anchor investor along with real estate institutional investors and debt financing for leverage as appropriate. Moreover, the company has also adjusted the existing asset management model in mixed-use projects along the Chao Phraya River for sale to investors.