SET-listed developer Raimon Land (RML) is poised for a financial turnaround in 2025, primarily driven by the sale of its One City Centre (OCC) office tower on Phloenchit Road, valued at 14.8 billion baht. The company is also launching super-luxury housing projects priced from 880 million baht, which are expected to bolster revenue streams.
Key Takeaways
- Raimon Land anticipates a return to profitability in 2025.
- The One City Centre office tower is currently 70% occupied, with expectations to reach 80% soon.
- New residential projects include low-rise luxury houses and riverfront properties.
- The company has faced consecutive net losses from 2020 to 2023.
Office Tower Sale Details
Raimon Land’s chairman, Kris Narongdej, highlighted the strategic importance of the OCC office tower, which is a joint venture with Mitsubishi Estate. RML holds a 60% stake in the project, which features:
- Location: Phloenchit Road
- Total Area: Approximately 61,000 square meters
- Current Occupancy: 70%, projected to reach 80% by early next year
The sale of OCC is aimed at generating revenue through a real estate investment trust (REIT), which is considered an ideal exit strategy given the anticipated occupancy levels.
New Residential Projects
In addition to the office tower sale, Raimon Land is launching several new residential projects:
- The 528 Estate
- Riverfront Super-Luxury Houses
Financial Performance
Raimon Land has faced significant financial challenges, reporting consecutive net losses from 2020 to 2023, with losses ranging from 312 million to 835 million baht. In the first half of 2024 alone, the company recorded a net loss of 582 million baht. The upcoming projects and the sale of the office tower are seen as critical steps toward reversing this trend.
Future Outlook
Construction for the new residential projects is set to begin next year, with completion expected by 2027. The company plans to collaborate with List Sotheby’s International Realty Thailand to attract ultra-high-net-worth individuals, including foreign buyers, who will be supported by a legal team throughout the purchasing process.
With these strategic moves, Raimon Land aims not only to stabilize its financial standing but also to position itself as a key player in the luxury real estate market in Thailand.
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