One Origin, an affiliate of Origin Property, discloses its long-term plan to develop various commercial property projects including hotels-offices-retail space worth more than 20 billion baht in total in several strategic locations in Bangkok and EEC by 2023, and kicks off “Open Platform: Grow Together” model to attract partners. It believes it can boost the annual profit to 500 million baht per year since 2025.
Mrs.Kamonwan Wipulakorn, Chairman of Board of Director, One Origin Co., Ltd., a subsidiaries of Origin Property plc said that the company can see long-term positive factors in commercial property development business, for example, the government’s support in the eastern economic corridor (EEC) project, privileges to attract foreign investors, and lower development cost during the adjustment of economic base. One Origin, as one of the leaders in commercial property development including hotels, office buildings and retail, considers this a good opportunity to invest. It plans the project development for its long-term growth and such plan comes along with a new business model named “Open Platform : Grow Together”.
The company’s investment and long-term growth plan can be done together with its partners which would drive the business growth, strengthen each other in developing large-sized project working together and sharing know-how technology to provide better business opportunity. The model has created a win-win situation because it and its partners can help each other to make each project unique, stylish and have various products and services. Currently, it has several forms of partnership, which are 1. Joint Venture Partner 2. Hotel Operator 3. Tenant 4. Property Leasing and Management Partner 5. Land Owner who uses the land for co-development with One Origin. This model is not limited to Thai partners only, but it also opens for potential foreign partners globally.
“Nowadays every business and every industry across the world are adjusting themselves in digital disruption era. We start to see global property company adjust their business in different directions, for example, they created synergy with other companies in the same business or different to develop projects that will satisfy the future lifestyle. We will adopt the Open Platform model, which is open for synergy strategy in line with the global business trend, and combine with our vision that focuses on Business Purpose customers, one of the most potential market, to make the company grow sustainably,” said Mrs. Kamonwan.
Mr. Chanchai Phansopha, Board of Director and Executive Director of One Origin Co., Ltd. said that for its commercial space businesses including office buildings and retail, it will focus on seeking partners, which are investors, business partners, mega food chains, hypermarts, office service and co-working space, outlets, convenience stores, and delivery and logistics to meet lifestyle and requirement of consumers in Lazy Economy era. This will not only expand its capability to cover all the market, but also gain better return on investment than generating income from rent and doing business.
“The commercial space business has currently faced fierce competitions. The whole project, including hotels, office buildings and retail space, needs to be developed together. From now on, not only the size of area do developers compete on, but they also have to compete the potential of the location, the ability of the developed space, and the ability to satisfy the requirement of consumers and surrounding communities. On the day that consumer behaviors have changed – new generation prefers shopping and ordering food online while old generation is tending to learn the changing lifestyle from new generation – we have to find partners who are not only tenants but long-term partners who might sign MOU to create new things together on Open Platform. We believe that we will get partners who will make us the first mover and grow together,” said Mr. Charnchai.
Mr. Pitipong Trinurak, Chief Executive Officer of One Origin Co., Ltd. said that the company plans to develop at least 11 commercial property projects, which will be launched one by one until 2023. These projects will be scattered in prime locations along the mass transit routes in Bangkok and metropolitan region as well as the eastern economic corridor (EEC). With total value of over 20 billion baht (estimating total assets), they comprise 1. Hotels and service apartment with at least 3,420 units, covering every segment, focusing on business purpose and budget hotel customers, which have constant occupancy rate in both low and high season. 2. Commercial space including office buildings and retail with total space of no less than 16,000 square meters. Most of them will be mixed-use projects, generating income and additional value from several types of property as well as becoming new landmarks in particular locations.
“Our team and partners are all veterans in commercial property business. In addition, we have land plots which have been conducted the market research and ready for development. To have new partners co-invest and drive the growth through our Open Platform will raise attention and create uniqueness for each project while consumers can have new experiences from commercial property business,” said Mr. Pitipong.
Under the 20-billion-baht development plan, two projects are completed and have launched the soft opening. They are Staybridge Suite Bangkok Thonglor and Holiday Inn and Suites Sriracha Laemchabang with total 650 units. This is an important milestone of One Origin and its original partner, Nomura Real Estate Development, Japan’s leading property developer and the world’s leading hotel operator InterContinental Hotels Group (IHG).
Moreover, the company has more projects that are not developed and under development in several locations, for example, Phayathai, Sukhumvit, Ramindra, Sriracha, Rayong, etc. There are new partners who are keen to pour investment in three projects. Meanwhile, it is looking for M&A opportunity to create more opportunity in business. According to its plan, it aims to generate the annual profit of 500 million baht by 2025. Those who are interested in becoming partners can write to firstname.lastname@example.org to receive more information.
Ms. Aliwassa Pathnadabutr, Managing Director of CBRE Thailand Co., Ltd., said that the global trend of property development currently is not started by sole owner, but they prefer making joint venture or creating synergy with partners in different sectors to make the development more exotic. This is considered as the key success factor in digital disruption era when consumer behavior has rapidly changed and always looked for new exotic experiences. As the leading agency in tenant acquisition for One Origin, CBRE Thailand is confident that One Origin’s projects and Open Platform model will respond to demand in the future. The strategic locations in Bangkok and EEC are the main factor to attract tenants and help the tenants’ businesses to be successful.