“Origin Property” joint venture foreign investment “House-Condo” 5 projects
Date 15 May 2022 time 19:48
“Origin Property” earns 3,776 million baht, net profit 738 million, foreigners are confident Joint venture 5 more houses-condo projects
Mr. Peerapong Jaroon-ek, Chief Executive Officer of Origin Property Public Company Limited (ORI), a fully integrated real estate developer, revealed that the results of the first quarter of 2019 (Jan. -March 2022). The company has total revenue of 3,776 million baht, divided into the transfer of ownership of condominiums and housing estates that are not under a joint venture (Non-JV) of over 3,041 million baht and other income such as businesses. Hotel, service business, extra income from joint venture Including income from joint venture project management that has been recognized continuously. As a result, the company has a net profit of 738 million baht.
Projects that play an important role in building ownership transfers in the first quarter of 2022 include projects that have started to transfer ownership for the first time, such as The Origin Ram 209 Interchange, a project that has gradually transferred ownership. due to both Bangkok and the Eastern Special Development Zone (EEC), such as Park Origin Phayathai, Notting Hill Rayong in the Origin Smart City Rayong project. Q1/22, which was at 8,149 million baht, a growth of regarding 6% from the same period of the year 2021 and a growth of 11% from the previous quarter, also played an important role in driving the project ownership transfers as well.
In this regard, the performance continues to maintain stability. As a result, both Thai and foreign investors are still interested in developing joint venture projects with the company continuously. In the past quarter 1/2022, there were 5 more joint venture projects. There are 4 projects that have been trusted by Nomura Real Estate Development Company Limited, comprising 2 condominium projects, namely So Origin Phaholyothin 69 (So Origin Phaholyothin 69) and A. Origin Plug and Play Srinakarin (Origin Plug & Play Srinakarin) 2 housing projects, namely Britania Town Bangna KM.17 (Britania Town Bangna KM.17) and Britania Home Bangna KM.17 (Britania Town Bangna KM.17) Home Bangna KM.17) and another project that is a joint venture that has a new partner (Partner) such as Lofis (Thailand) Co., Ltd. is the Grand Britannia Khu Khot Station project, which is considered Britannia’s first step in venture capital Develop projects with leading partners
Mr. Peerapong added that for the second quarter of 2022, the Park Origin Thonglor luxury condominium project with a project value of over 12,000 million baht will begin to gradually transfer ownership for the first time. Currently, the project has sales pending revenue recognition (backlock) already stocked up to more than 70% of the project value. Which should play an important role in the transfer of ownership and revenue from the second quarter of 2022 at the same time, the overview of the company’s current backlog. Both the JV and Non-JV projects, with a total value of over 35.8 billion baht, are expected to play a key role in the growth of the transfer of ownership during the remaining three quarters.
At the same time, other businesses Under the multiverse growth plan or Origin Multiverse, it continues to grow continuously. The hotel business under One Origin Company Limited still sees good signs of growth. In 1Q22, the first 2 hotels are Staybridge Suites Bangkok Thonglor and Holiday Inn & Suites Siracha Laemchabang recorded an occupancy rate of 83% and 58%, respectively, an increase from the same period last year. Recognition of additional revenue from three ibis hotels that have just completed the acquisition and should receive additional benefits from easing tourism measures and opening up more foreigners to travel to Thailand From all factors, it is expected that the company’s revenue this year will continue to meet the target of 17,500 million baht.
In the first quarter of 2022, TRIS Rating has revised the rating of Origin Property Public Company Limited from BBB with a positive outlook to BBB+ with a stable outlook due to the company’s operating performance that Consistently good and able to continually advance to a higher position in the real estate business Competing for market share in both condominium and housing businesses has increased exponentially over the past 5 years, with products covering a wide range of price ranges up to 50 million baht. that is less than 1x and still able to generate revenue and sales growth Even under the COVID-19 situation in the past 2021
For Origin Property Public Company Limited or ORI, there are various business structures, consisting of
1. Residential Development Business: 103 condominium and housing development projects have been developed (as of the end of Q1/2019), such as the brand Park Origin (PARK ORIGIN), The Origin ( The Origin, Origin Plug & Play, KnightsBridge, Notting Hill, Kensington, Hampton , Brixton (Brixton) and Britannia (BRITANIA) total project value over 154,900 million baht
2. Business that generates regular income (Recurring Income Business) such as hotels, serviced apartments, retail. 3. Service Business (Service Business) such as real estate management business. Agent business for buying, selling, renting real estate Real estate consulting business and 4. Mega Trends business: new business groups with long-term growth potential such as logistics business Health care business Asset Management energy business, etc., to enhance the quality of life of consumers in a comprehensive manner
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