SET-listed developer Sansiri Plc has invested US$80 million (2.3 billion baht) in six overseas technology and lifestyle companies to diversify outside residential development and boost sales from foreign markets next year.
President Srettha Thavisin said the overseas investments are partly because of low growth in the local property sector but also to expose its name globally.
"The Thai property market grows only 5% a year, not much," he said. "The six new investments will provide new sources of income from non-property business and can draw more foreign buyers from new markets like the US and Europe."
The company expects 12 billion baht in presales of Thai residential units from overseas markets by the end of next year, up from 8 billion it projects for this year. Of the 2017 amount, 2.6 billion baht is from Chinese, more than double the figure last year, said Mr Srettha.
Of the $80-million investment, $58 million over five years is slated for Standard International, a US-based boutique hotel under the brand The Standard, where it will hold a 35.09% stake.
Mr Srettha will be Standard's new chairman and three other Sansiri executives will be members of the board of directors as it owns a controlling stake. The first payment of $16.29 million was made last Tuesday.
"We will launch The Standard Residences in Thailand with a hotel management contract and two franchises: The Standard and Bunkhouse. The first two locations will be in Bangkok and Phuket next year," he said.
Concurrent with the launch will be the introduction of One Night app, a hotel booking app for same-day stays created by The Standard and launched last year.
Mr Srettha said the company spent £5 million (220 million baht) to buy an 11.2% stake in UK-based Flying Jamon Ltd, which provides hospitality management services for rental real estate under the Hostmaker brand.
Sansiri also bought a 13.04% stake in Winkontent AG, a global lifestyle media, retailer and tastemaker firm that publishes Monocle magazine, with an investment of $5.9 million.
Based on its global reputation, the company plans to launch Monocle Residences as a residential brand with 150 units worth 2-3 billion baht in 2018.
It also invested in Singapore-based co-working space provider JustCo, buying a 6% stake. Sansiri plans to launch co-working spaces at two AIA office towers on Sathon Road and Ratchadaphisek Road.
In addition, the company holds a 5.8% stake in Farmshelf, a hydroponic urban farming startup.
"Revenue from the new investments will depend on how active each one expands its business," said Mr Srettha. "We will spend another 500 million baht next year for non-residential development business that must be related or contribute to our core business. We are interested in online brokerage services."
SIRI shares closed yesterday on the Stock Exchange of Thailand at 2.44 baht, an increase of four satang, in trade worth 953.55 million baht.
