Bangkok--21 Nov--Psquare PR Total Solution
Mr.Yongyutt Chaipromprasith Chief Executive Officer of Aquarius Estate Company Limited said the total revenue for Aquarius Estate in 2012 is a total of 700 million Baht from these sources;
AEQUA Residence 510 Million Baht or 71.83%
Management Service Fee 113 Million Baht or 15.92%
ShaSa Resort & Residences 85 Million Baht or 11.97%
Asset Rental Yield 2 Million Baht or 0.28%
He added this year, 2012, is the year that all units in AEQUA Residence Sukhumvit 49 are due to transfer, so it became the main source of annual revenue. 2012 is also a very good year for ShaSa Resort & Residence, Koh Samui as its revenue has grown by 50% despite the situation in Europe, especially in the Euro Zone that served 38% and 40% of total revenue in 2010 and 2011 respectively. The credit goes to the hotel team that made such quick moves to focus on the new markets such as Eastern Europe, the Middle East and Australia. The Aussies alone occupied 14% of total revenue for 2012.
Looking at the main business unit of Aquarius Estate that is the Integrated Real Estate Service Fee, we can see that the total revenue is 113 Million Baht, growing 175% from 2011 mostly from continuing projects from 2011, SYM. With SYM, there was a total sales volume of 700 Million Baht within October 2012. Also, the company was contracted by a long-time business partner, Ananda Development's project IdEO Mobi Rama IX which Aquarius Estate takes care the sales of the whole project worth 2,700 Million Baht. In the 3rd quarter, Aquarius Estate has just been assigned to proceed with the fully integrated real estate management of the project Whizdom Condominium Sukhumvit 62-64 from Magnolia Quality Development Corporation with available units worth 900 Million Baht.
Mr.Yongyutt targeted in 2013 “ Aquarius Estate is planning to invest for company projects worth 2,300 Million Baht in a High-end Single House Project of 15 exclusive houses worth 300 Million Baht. A 1,000 million baht project on the new BTS line and another project around Sukhumvit CBD worth around 1,000 Million Baht. The company is currently now looking for the land plots for those. Yongyutt strongly believes that the Sukhumvit CBD is still a cash cow for agents, developers, and buyers but this very cow can be a bit tricky to ride, it will a be rodeo, he stated. Nevertheless, Yongyutt believes in himself and the Aquarius team to handle it well because of the experience gathered over 20 years. The experience can be seen from AEQUA Residence Sukhumvit 49's results, which gives one of the best rental yields on Sukhumvit Road”
For ShaSa Resort & Residences, Aquarius is aiming to grow another 18% of revenue to make it the resort's first century break since opening in 2008. Moreover, the sales & marketing team of ShaSa Resort & Residences is going to take care of the entire sales & marketing activities of Villa 360, Phi Phi Island, the largest and highest invested resort on the Phi Phi Islands. The partnership will be from domestic markets through out global markets. The partnership will give both partners the advantages of manpower & seasonal differences to welcome the growing number of 'islands hoppers.'
Regarding the integrated real estate service fees, apart from the ongoing contracts, Aquarius is in the negotiation process with new clients for another 4 projects. 2 of them are in Bangkok; one is a riverside Condominium with retails worth 1,700 Million Baht. Another one is a 1,000 million baht high-rise project on South Sathorn Rd. The other 2 are located on the prime locations of Hua Hin & Chiang Mai worth 1,600 million baht & 300 million baht respectively.
Mr Yongyutt disclosed an overview of the condominium market this year that there will be factors from the Bank of Thailand (BOT) that will cut interest rates 0.25% to leave only 2.75% in the MOT meeting that has passed. This has sent signals to the private sectors that lowering the interest rates will have an effect on lowering the capital cost and increasing purchasing power for consumers.
Although condominium projects along the BTS line will continue to gain popularity, the increasing needs of unique characteristics are clear. Differences are on the rise, and the past models of developing the projects will decline. The real estate companies are now focusing more on the Corporate Branding to differentiate between competitors. Aquarius Estate will benefit from this because it is a small company with products that have been able to compete with company giants.
In regards to the AEC that will happen in the upcoming future, there will be investment liberalization that will lead to foreign investments in real estate. These foreigners will want to have a local partner and mentor as well. If compared with other consultancy firms, Aquarius Estate is even smaller, but the advantage is due to the service integration that other companies do not offer. The services they have is only Feasibility and Sales & Marketing, however, these companies do not have Product Development, Construction Development, and Promotion Activation. Aquarius Estate has all and is the only company to have a business like this as well as offer these complete services.
"Referring to the services that Aquarius Estate offers, there is currently no company in the industry that offers the full range of services and features that Aquarius Estate offers. An important factor about AQ is that AQ is also a developer. Being a developer, AQ understands what is means to be a developer and basis its decisions like a developer would. The basis of being a developer together with the expertise in sales and marketing, AQ is able to determine accurate cost estimates. However, the majority of the market only has 'sole agents' From accepting this fact, we have set a target for growing sales revenue for 2012 and 2013 as well as an annual growth target of 50% for the next 3 years." Mr.Yongyutt Chaipromprasith said.