SC Asset Corporation, a SET-listed company, is gearing up to make a significant investment of 20 billion baht between 2025 and 2029 in various sectors such as logistics, hotels, and office rentals. The goal is to unlock the revenue potential of these new sectors and generate a total revenue of 10 billion baht over the five-year period. This strategic move is aimed at diversifying the company’s portfolio and ensuring a stable income stream amidst challenging conditions in the residential property market.
Chief executive Nuttaphong Kunakornwong highlighted the key challenges facing the residential market this year. These challenges include high household debt leading to an increase in mortgage loan rejection rates, reduced consumer confidence resulting in a decline in customer walk-ins, and a surplus of unsold supply intensifying competition. In response to these challenges, SC Asset Corporation is looking to tap into new sectors that offer strong growth potential.
SCX Corporation, a subsidiary of SC Asset Corporation, will be managing the company’s recurring-income businesses focusing on domestic investments over the next five years. Rachod Nantakwang, managing director of SCX Corporation, revealed that the majority of the investment will be directed towards logistics and hotels. The plan is to allocate around 2 billion baht per year to each of these sectors.
In the logistics sector, SCX Corporation will be developing rental warehouses with a combined space of 700,000 square meters. This includes projects on Bang Na-Trat Road at KM 20 and KM 23, in the Eastern Economic Corridor area, and in Ayutthaya’s Wang Noi district. Notably, two of these projects are joint ventures with the Japanese developer Tokyo Tatemono, aiming to capitalize on the growing e-commerce business.
Moreover, in the hotel business, SCX Corporation is working on constructing Kromo, Curio Collection by Hilton, with 306 rooms near Sukhumvit Soi 29. This project is a joint venture with Japan’s Daiwa House Industry. Additionally, The Standard Pattaya Jomtien, offering 161 rooms, is also in the pipeline through a partnership with SET-listed contractor Syntec Construction. These hotels are expected to open in the first and second quarters of 2025, respectively.
The company also has a 1.4-billion-baht investment budget for office rentals. The focus will be on renovating six existing towers with a combined lettable area of 120,000 square meters, boasting an average occupancy rate of 90%. This move signifies SC Asset Corporation’s commitment to expanding its presence in the commercial real estate sector.
In conclusion, SC Asset Corporation’s strategic investment in new sectors such as logistics, hotels, and office rentals demonstrates its commitment to unlocking revenue potential and diversifying its revenue streams. By venturing into these high-growth sectors, the company aims to ensure a stable income flow and navigate through the challenges posed by the current residential property market.