Raimon Focusing On Hotels And IVF Ventures
The Thai property market’s expected to slow down in the future, and, in response, SET-listed developer Raimon Land PLC (RML) wants to shift their focus, developing new hotels, including a new convenient hotel in Sukhumvit, as well as in-vitro fertilisation (IVF) ventures, which will amount to a total investment of 5.3 billion baht.
According to CEO Lionel Lee, hotels and IVF are the recurring-income businesses for the company for 2019, following their shift in 2018 to food and beverage through a joint venture with Baan Ying restaurant. Another focus for the business was offices, with a building currently set to start development later this year.
He says that diversifying to non-property businesses should create a stable recurring income stream for RML. The forecast is that the market is set to slow down for the next couple of years as China and Europe cool off, which will affect luxury property demand, as that is dependent on the macroeconomic situation thanks to having buyers from across the world.
Raimon Land has been talking with an IVF provider that operates in Singapore and Australia for a joint venture in Thailand, as there’s a lot of demand from Chinese couples seeking IVF for their second child, now that China’s infamous one-child policy ended.
The company has plans to build fertility wellness centres in two locations. One of these will be located in a 40-rai plot near Toscana Valley in Khao Yai, Nakhon Ratchasima, which will cost 100 million baht to buy. The other will be on a floor at One City Center (OCC), a new office tower on Phloenchit Road with an area of 65,000m2 that started construction in February.
Other key property they’re looking to develop is a new convenient hotel in Sukhumvit; the company is already looking for a plot on Sukhumvit Road, with the new hotel to feature the concept of “work and stay”.
Currently, Raimon Land also plans to launch two new luxury condo projects in the Phaya Thai area and on Sukhumvit Soi 38, which amounts to a total investment of 11 billion baht. The aim of the company is to have 5.5 billion baht in presales by the end of 2019, as well as to get revenue from recurring income business to go up by 30% by 2023.