BTS Investing Big On Real Estate

BTS Group Holdings Plc, a firm that is listed by SET, is currently undergoing a restructure on its property business in order to aid a residential project that is set for five years. The development project is said to be worth 100 billion in baht. The company is also planning to expand the covered sector of its commercial property.

The company’s goal is to increase the revenue proportion when it comes to their real estate and make it 15 per cent instead of the current 10 per cent of the entire amount comes 2018.

According to the chief operating officer of the BTS, Rangsin Kritalug, the company is also grouping once more the property business once it had infiltrated the joint venture in residential development with another company Sansiri Plc or SIRI, another SET-listed company. The joint venture was signed only last year.

He added that the group will be transformed into a holding firm and will not focus mainly on direct investment. The investment in property business will be done via the subsidiaries which are now up to 30 companies all in all.

There are four different business units comprising BTS inclusing property, mass transit, services and media. All of these units are able to generate 9 per cent, 43 per cent, 13 per cent and 35 per cent of the entire revenue respectively. This is during the first quarter of 2016’s fiscal year which ended last June 30 of 2016.

The company is also planning to invest another 7.6 billion baht for the current fiscal year. Around 4.28 billion baht will be allotted for the mass transit unit while the other 2.7 billion baht will be given to the property unit.

The money for the property unit will be spent on land acquisition amounting 1.2 billion baht, residential business will have 1 billion while the 500 million will be allotted for the renovation of the Thana City Golf and Sports Club.

BTS-SITI has many projects in Thai real estate as a joint venture that is included in the firm’s property business. It will also get its recurring income from sources such as rental space for offices, golf courses and hotels.