Mr.Sorrapong Mamuang, Chief Financial Officer of RML, said, "RML is committed to operating with transparency, prudence, and strict compliance with all legal and regulatory standards to safeguard the best interests of shareholders and stakeholders. Every investment decision is carefully evaluated for risk and long-term value. We are confident that our investments will not only ensure financial stability but also create growth opportunities for the future."
Key Points of Clarification:1. Advance Payments for Investments
1.1 Pre-Development Costs for a New Mixed-Use Project
RML has allocated pre-development funds to support a new mixed-use project scheduled to be launched in the first quarter of 2025. These temporary funds are held with a trusted executive and serve to reassure the landowner of RML's readiness to invest while minimizing investment risks. This approach underscores RML's commitment to transparency, risk management, and shareholder value.
1.2 Advance Payments for a Joint Venture Project
A prior decision by RML's former management in 2019 involved securing land for a condominium development in Sukhumvit. Upon reevaluation by the current management, certain development constraints were identified, prompting the company to set aside an impairment provision to reflect the project's adjusted valuation. RML is renegotiating terms and expects a resolution by Q1 2025.
2.Investment in Convertible Notes in the U.S.
In 2022, RML invested in convertible notes of Nautilus Data Technologies, Inc., a U.S.-based data center company. Nautilus is preparing for a Nasdaq IPO within two years. While some shareholders have committed additional funds, RML is carefully evaluating its next steps, ensuring all decisions align with shareholder interests and long-term financial objectives.
3.Joint Venture Agreements fo Villa Project (Launch in 2025)
RML has signed a joint venture agreement for a villa project to be launched in Q1 2025. The project, to be developed in two phases, is being adjusted to comply with new legal requirements in Phuket. Both RML and its partners remain committed, citing strong business potential and profitability.
RML continues to implement robust financial strategies to maintain liquidity and support sustainable growth. The company is preparing to issue new debentures or secure loans from leading financial institutions while expediting the sale of completed real estate inventory to enhance cash flow.
The company's strategic focus includes the transfer of the 'OCC' building, valued at 14.8 billion baht, into a REIT. The building currently boasts an occupancy rate of nearly 80% and has attracted significant interest from domestic and international investors. RML is in advanced negotiations with five major investors and expects to finalize the REIT conversion by 2025.
Mr.Sorrapong , concluded, "2025 marks a significant milestone for RML. With the 'OCC' building as a key component of our strategy, we are on track to achieve profitability and strengthen our financial position. Our pipeline of new project launches, coupled with the successful execution of our turnaround strategy, positions RML for sustainable growth and long-term stability."
Source: Raimon Land