SET-listed property firm Nirvana Daii Plc (NVD), a subsidiary of Singha Estate Plc, will help landlords in major provinces nationwide to jointly develop high-end residential projects worth at least 1 billion baht each, aiming for 3 billion baht in revenue by 2020.
Chief executive Sornsak Somwattana said the model is a turnkey solution to help Nirvana boost sales from the homebuilding business, which currently supplies less than 10% of revenue.
“Many landlords have a good piece of land in a prime location but have no property development experience of brands,” he said. “Instead of selling their land bank at the price of undeveloped land, they can join us to develop a housing project under our brands and gain a higher profit from the increased value of the land.”
In a joint development, the landlord invests in land and utilities for the project. Nirvana will build houses, manage sales and take charge of unit transfer, community management and after-sale service.
With this model, Nirvana can expand housing development nationwide with low capital requirements and in locations where even large developers cannot buy. At the same time, landlords can use Nirvana’s track record to secure project financing from banks.
Mr Sornsak said each joint development will need at least 10 rai and a development value of at least 1 billion baht. There will be four brands under the business model, all featuring single detached houses in the upscale segment.
The brands are Beyond, with homes priced at 20 million baht; Intro, at 7 million baht; Icon, at 13 million baht; and @Work, at 25 million baht.
Nirvana aims to sign contracts for at least 17 projects in the next five years and expects to have 3 billion baht in revenue by 2020.
The first project, launched in February this year, is in Phutthamonthon Sai 2 on a 12-rai plot with 40 units priced at 17-24 million baht and worth 1.3 billion baht.
NVD shares closed yesterday on the Stock Exchange of Thailand at 3.76 baht, up two satang, in trade worth 361,710 baht.
