SET-listed Major Development Plc (MJD) will spend 1.3 billion baht to develop a hotel and an office building this year to add to recurring revenue from properties.
The company also plans to launch seven new residential projects worth a combined 8 billion baht this year.
Branching into the hotel and office segments will help the company generate income from non-residential development when residential business is down, said managing director Suriya Poolvoralaks.
"Mixed-use development is a new trend for many Thai developers as competition in the residential market is high," Mr Suriya said. "Investment in recurring-income assets is a strategy that can add value to the company and help us sustain revenue."
The 300-million-baht, small-scale hotel will be in Bangkok's inner-city area.
The office tower of at least 30 storeys will be on Ramkhamhaeng Road, a potential location linked to a new central business district in the Rama IX area. With an investment of 1 billion baht, the tower will have a lettable area of 30,000 square metres.
The company has an office building, Major Tower Thonglor, on Thong Lor Soi 10 with a lettable area of 11,600 sq m. It also has two hotels in Pattaya and Hua Hin. Revenue last year from the three properties accounted for less than 5% of total.
Mr Suriya said the first residential project of the planned seven will be Muniq Langsuan, a luxury condominium project worth 4 billion baht. This will be Major's third joint venture with two Singaporean investors, GMM Singapore Real Estate Pte and Must International Trading Pte.
The earlier joint ventures of the three parties were two luxury condo projects: the 2.8-billion-baht Muniq Sukhumvit 23 and the 7-billion-baht Marque Sukhumvit.
"Our foreign partners continue investing in luxury condominium development in Bangkok, as they are confident in this segment," Mr Suriya said. "The middle-end market with prices of around 150,000 baht per square metre has too much supply in some locations."
Muniq Langsuan will occupy a freehold plot on Soi Ton Son at the end of Lang Suan Soi 7. It will be a 28-storey tower with 166 units sized 50-254 sq m and priced between 12.9-90 million baht a unit.
The company expects to have 50% sold during the Feb 10-11 launch period and aims for 60% by year-end.
MJD shares closed yesterday on the Stock Exchange of Thailand at 3.16 baht, up four satang, in trade worth 740,870 baht.
