“Asset Five Group”, a leading real estate developer in super luxury segment for both horizontal and vertical projects in central locations, reported satisfactory overall 2022 business performance as expected thanks to the recent sale closings of 2 projects and the launches of 3 new projects in both Bangkok and Udon Thani with sizable backlogs to be recognized in revenue next year. The Company set the 1-2 years goals to actively penetrate horizontal housing market as well as building on successful brands with the target revenue of THB 5,000 million in 2026 and expected 2-3 new project launches under the concept “Urbanized Living”, aiming to address changing needs and lifestyles of consumers who look for valuable residences that meet their requirements in Bangkok and the upcountry.
Mr. Supachoke Panchasarp, CEO of Asset Five Group Public Company Limited or “A5” revealed that the Company made a great success in 2022 with overwhelming interest from customers as evidenced by the sellout of all units of Vana Residence Rama 9 – Srinakarin, a luxury single house project with the concept of “A New Definition of Luxury Urban Home”, designed to meet the demand of new generations and accommodate family members of all age groups. Moreover, the newly-completed CINQ ROYAL Krungthep Kreetha, a single house project with the average price of THB 50-100 million, was sold out since the first phase of sales during the 2-day period of VVIP Day. With “5 Values of Life” concept, the project generated over THB 1,000 million in revenue even without pre-sales. In addition, A5 resumed its trading in the MAI for property and construction industry group since 7 March 2022 and received better-than-expected responses from its offering of debentures during August 2022. Besides, the Company has been acquiring multiple pieces of land in high-potential locations in line with the Company’s direction for future developments of its successful brands such as Vana Residence and CINQ ROYAL.
Regarding the latest progress of Tonson One Residence, this super luxury condominium project is on track with the top-off ceremony organized recently and expected to be finished and ready to move in by the 2nd quarter of 2023. This project offers one and only exclusive freehold luxury property on the prime location of Tonson Road, Ploen Chit and Chidlom. Plus, the construction of CINQ ROYAL Krungthep Kreetha also progresses as planned for its club house and residences with luxury and iconic design. The construction for 1st phase of the project is to be completed and opened for interested people during the beginning of 2023. A5 showed interest for Krungthep Kreetha since 4-5 years ago as this high growth area has a potential to become “Beverly Hills of Thailand” in the future. The area has been booming consistent with the Company’s development direction on the value of asset that the locations must appreciate in value every year. This is the reason why A5 is among the pioneers for the developments in this area. Currently, the area is considered the most popular spot for luxury houses thanks to convenience in transportation and a full range of facilities including international schools, hospitals, department stores and restaurants. It is not surprising that competition is intense for this neighborhood which forces each developer to promote different features of their projects to attract customers. This trend benefits customers as they have more options and are able to choose ones that meet their requirements better compared with other areas. Mr. Supachoke noted “We are confident that A5 is among the best choices for customers who are looking for super luxury houses.”
Asset Five conducts our business that regards “Home” in a broader meaning beyond aesthetic properties to encapsulate values that reflect a philosophy in living. Therefore, we differentiate how we build “Home” from others through appealing designs with attention to detail including practicality as our target customers are those who prefer to have freedom in creating their own houses and are not satisfied with traditional houses that never sufficiently address their needs. Given our vision, we developed projects such as Values of Life with care from selection of lands and site planning to unique design of houses and common areas with respect to functionality, practicality and aesthetics of materials, durability, freedom in design and distinctive interior design. We offer our customers beyond “Home” usually understood in single dimension. At A5, we foster customer centricity while every step in our development we intend to address customers’ pain points and integrate with our designs. As a result, our “home” is not conventional like other projects, but our value proposition is to offer what customers truly want so that they can live happily given any lifestyle they have or prefer.
For the future business plan of the next 1-2 years, A5 will continue to focus on horizontal housing projects and expand our successful brands such as Vana Residence, CINQ ROYAL and Tonson One Residence with realized revenue target of THB 5,000 million in 2026, equivalent to average revenue growth of over 40% per year while we planned to launch 2-3 new projects every year both in Bangkok and other provinces.
Note that during the past few years, the Company enjoyed satisfactory business performance and continuous growth despite the economic slowdown. One of the key factors contributing to our success is the emphasis on niche market for luxury segment that responds to specific groups of customers with high purchasing power and no or limited need for bank loans which result in low loan rejection rate. Hence, the unfavorable economic conditions barely impacted A5’s business performance or plans to launch new development projects in the future.
