Origin forms ONE ORIGIN to penetrate hotels and mix-used projects, Targeting 20bn baht investment and going public on SET in five years

Real Estate Press Releases Monday June 11, 2018 15:07
Bangkok--11 Jun--Agate Communications

Origin Property PCL has launched a new subsidiary "ONE ORIGIN", led by former executive of the Erawan Group to focus on the group's recurring income businesses by planning to invest 20 billion baht and get listing on Stock Exchange of Thailand in five years.

Mrs. Kamonwan Wipulakorn, chief executive officer of ONE ORIGIN Company Limited, a subsidiary of Origin Property PCL, said ONE ORIGIN will be in charge of creating all recurring income businesses for Origin Property and will play a vital role to make the long-term revenue for Origin Property. In its 5-year masterplan during 2018-2022, ONE ORIGIN plans to invest approximately 20 billion baht in recurring income businesses.

The company has catagorised the businesses that it wants to invest into three groups; 1. Accommodation such as hotels, serviced apartments 2. Office and Retail and 3. Foods. Accommodation will account for 70 per cent of its investment and the other two groups will share the remaining 30 per cent.

"We target that the assets from those investment will help create the market value of around 30 billion baht and also generate the revenue of 10 billion baht over this 5 years plan. We should become one of the top five hotels and mixed-use property developers," she said.

Mrs. Kamonwan added that the investment capital in the first three to five years will come from two sources: 1. The capital injection from Origin Property PCL and 2. The capital from joint ventures with global partners such as Nomura Real Estate Development, Japan's leading property developer, which has already been partnering in many projects with the group including Staybridge Suites Bangkok Thonglor. Meanwhile, the company also plans to set up a real estate investment trust (REIT) and go public in the Stock Exchange of Thailand to mobilse more fund which will be benefitial in the long term.

"The recurring income businesses will make us become the integrated property developer, which can perfectly respond to both business and leisure lifestyles," said Mrs.Kamonwan.

Mrs. Jatuporn Phiukhao, managing director of ONE ORIGIN Co Ltd, said the strategy of ONE ORIGIN will focus in strategic locations such as Bangkok and Eastern Economic Corridor (EEC) as these two locations has high demand in various segments. Meanwhile, it also plans to invest in mainstream tourism cities such as Pattaya, Phuket and Chiang Mai. The development can be either mixed-use or standalone project, depending on the potential of each land and location.

"The growth strategies will include hiring the world-class international chain, building our own brand and making acquisition, depending on customers' requirements. All strategies will be important parts to strengthen and make ONE ORIGIN grow in the rapid pace," said Mrs. Jatuporn.

Initially, it plans to develop 15 hotels and serviced apartments with over 4,000 rooms within 5 years to serve both corporate and leisure clients as well as 10 offices and retail properties with the space of at least 50,000 square meters.

Previously, the company has signed the management agreement contract with InterContinental Hotels Group (IHG) to manage three hotels, comprising 1. Staybridge Suites Bangkok Thonglor 2. Staybridge Suites Chonburi Siracha and 3. Holiday Inn and Suites Siracha Laemchabang. These three hotels will be in operation within 2021. Also, this is the first time that Staybridge Suites brand is existing in Asia Pacific. Operating by well-known worldwide brand should help increase the opportunities to attract both Thai and foreign customers.


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