The Nest Property Company Limited is planning to spend Bt 10 billion on hotels and condominiums in Bangkok by 2021.
The company popular for coffee production and other businesses is set to invest more than Bt 10 billion in property development in Bangkok. Part of their plan is two condominium projects, a hotel in Ploenchit, and another one in Na Na Road.
Chief Executive Officer Ausana Mahagitsiri explains that this year, they are planning to launch two condominium projects amounting to Bt 3.6 billion. The Nest Sukhumvit 64 has already sold 80 per cent of its total value, while the Nest Sukhumvit 71 was launched just last August. They are expecting to see an increase in the presales of the properties, reaching Bt 2.5 billion before the year ends. They are also expecting high revenue from other condominium projects in Sukhumvit 22 and Ploenchit Road.
New Investments and Management
The hotel in Ploenchit and the other one in Na Na Road are set to be managed by the Rose hotel chain— a hotel chain under the brand Penta. The hotel in Ploenchit will have about 150 rooms with an estimated cost of Bt 800 million. They are expecting it to be finished by 2022. The Pentahotel in Na Na road is estimated at Bt 1.2 billion, and would be done by 2024.
Ausana explains that both hotels are expected to generate 10 per cent recurring income.
Property development in such a huge scale is no easy feat. The company is planning to shoulder the funding needs of the projects through its initial cash flow, together with loans from banks.
Ausana adds that with the increasing demand for residential and hotel accommodation in the central business districts in Bangkok, the company has decided to increase its investment in the industry. The demand is a combination of overseas and domestic markets: with up to 70% of the target market coming from the domestic side, and the remaining 30% mostly makeup of mainland Chinese, Hong Kong, and Singapore market.
The growing demand and development is a sign of Bangkok’s thriving economy, and a growing business district. It is bound to boost the country even further.