Stocking up on Assets in Response to the Year of the Tiger’s Market Opening’s “Rebound”
SENA shifted its strategy by leveraging its strong financial position and a team that is willing to envision new opportunities under the concept "SENA Strong," investing over 1,254 MB to close four big deals in 2021, purchasing stocks and businesses, and seizing the opportunities to invest in high-potential companies with favorable locations, confident that the investment will be worthwhile and generate positive returns in the long run. SENA, receiving signals for the 2022’s real estate market rebound, targets to penetrate into the new generation through the brand “FLEXI”. After acquiring three condominiums, SENA is currently studying JSP stocks after already holding 24.16%.
Dr. Kesara Tanyaluckpak, Managing Director of Sena Development Plc (SENA), a developer of horizontal and vertical real estate projects, disclosed that SENA expanded its business possibility in 2021 by investing in the acquisition of four high-quality real estate deals worth around 1,254 MB. This is to provide positive returns and to sustainably expand the company's growth in the long run. Positive signs for the Thai economy have been noticed following Thailand's opening of the country, an increase in immunization rates, and the Bank of Thailand relaxing its LTV restrictions to encourage the real estate market. All of these indicators point to a rebound of the real estate market.
“SENA sees that many projects have challenges regarding insufficient liquidity so the projects cannot continue as a result of the COVID-19 pandemic. However, numerous projects are under construction and are located in high-potential locations. We see the opportunity here, so we acquired many businesses which help save both time and costs and generate revenues earlier since some projects already have previous customers who are ready to pay. In the past, these projects might have merely encountered challenges with working capital. Thus, we are bold at making decisions while others are afraid to acquire worthwhile high-quality projects since crises are the best time to invest for people with strong financial and personnel resources, and the best time to acquire high-quality businesses where the old owners lack liquidity. It is the fulfillment of our own assets as well as the driving of the businesses we acquire to continue on”, said Dr. Kesara.
As for the buying of stocks and the closing of the four deals wherein the most recent deal involved the purchase of 1,014,600,000 JSP Property Plc, JSP's, common stocks representing 24.16 percent of the company's issued and paid stock at a price of 0.50 THB/stock or an equivalent of 507 MB from the same stockholder in order to expand the company's investment in real estates and to support real estate development projects. JSP is one of the real estate developers, developing horizontal projects and condominiums for sale and for rent under the brand J City, J Villa, J Town as well as commercial projects such as Miami Market at Bangpoo, Sampeng 2 Park on Kanlapaphruek Rd, etc.
However, in the buying of JSP’s business, SENA is still in the process of studying the possibility of further investment. SENA will proceed according to the procedures in the announcements made by the Thai Capital Market Supervisory Board and the Stock Exchange of Thailand and in the relevant laws.
SENA previously bought 100% of Pataranan Asset Co., Ltd.'s issued and paid stock, totaling 385 MB, establishing Pataranan Asset Co., Ltd. as a subsidiary company of SENA. Pataranan Asset Co., Ltd. is a company that is currently developing one low-rise condominium under the brand "Hype Sathorn-Thonburi." The 8-story condominium consists of five buildings totaling 914 units on 7 Rai. The project's name has been changed to "FLEXI" Sathorn-Charoennakorn to allow management to be more flexible and to better target the target customers. SENA is ready to invest in the second phase of the project in 2022, following the transfer of ownership of the first phase in December 2021
SENA has acquired real estate projects from other developers, including an under-construction condominium by Asset Bright Plc, or "ABC." The project is also developed under the brand “FLEXI” and targets the new generation with a price starting only at 1.89 MB. SENA also acquired Nusasiri Plc's Fresh Taopoon Interchange project and rebranded it as "FLEXI," with the project scheduled to open in 2022.
The new brand “FLEXI” is a brand with market strategies that target Gen Y & Gen Z by emphasizing the diversity of lifestyles, the ability to modify oneself, and perpetual flexibility. “FLEXI” was adapted into use with the Made From Her concept: building living spaces out of care, collecting every detail to develop products and services for SENA’s customers to receive the best product and services. This is accomplished through adjustable furniture and after-sale service through SENA 360 Application, the only application for requesting fixing, buying-selling, entrusting, renting, and most importantly, for checking the use of solar cells by themselves in real-time.
Dr. Kesara said that the aforementioned moves are in accordance with SENA’s new strategy under the “SENA Strong” concept which takes into consideration the current situation and buying power to build new opportunities for the company. Before this, we bought undeveloped lands to develop, now we focus on investing carefully since the COVID-19 situation had caused an important opportunity for our company to grow sustainably in the long run.