RML successfully raises 3,588M baht in PP and RO for business expansion

This strategic move, approved during Board Meetings No. 1/2024 on February 7 and No. 2/2024 on February 9, aims to bolster sustainable profit growth, as communicated by Korn Narongdej, RML's CEO.

The capital increase includes a private placement (PP) to Kris Narongdej and Patee Sarasin, totalling 2,522 million shares at 0.42 baht per share. Additionally, a rights offering (RO) of 714 million shares at the same price, with a ratio of 9.38 existing shares to 1 new share. The remaining balance comprises warrants and ESOP at a strike price of 1 baht per share. Anticipated proceeds from the capital increase are approximately 1,711 million baht. The board of directors has approved the transaction, to be proposed at the Extraordinary General Meeting of Shareholders No. 1/2024 on March 22, 2024.

" In this capital increase, newly issued shares have been allocated to Patee Sarasin, who assumes the role of a shareholder and director of the company effective from February 8, 2024, onwards. Patee will play a pivotal role in diversifying RML’s investment expansion and project development. This involves venturing into hospitality and real estate service businesses, including branded residences and hotels in major tourist provinces such as Pattaya and Phuket. The aim is to cater to the anticipated recovery of the tourism and service sectors in 2024.

Furthermore, leveraging his exceptional expertise in aviation and tourism businesses, along with his dedicated leadership and remarkable credentials, Patee is poised to enhance our organizational capabilities. His contributions will play a vital role in propelling us towards our goal of becoming the foremost leader in luxury and ultra-luxury real estate in Thailand," added Korn.

The infusion of additional capital will fortify the company's financial standing, providing substantial support for growth over the next 2–3 years as outlined in the current business plan. This capital injection significantly bolsters our capacity for expansion. Looking forward, our strategic vision involves transitioning into a Real Estate Financial Platform, creating opportunities for collaborative investments from both domestic and international funds.

Leveraging the formidable reputation of the RML brand, which boasts over 36 years of real estate expertise, we have successfully executed projects valued at over 150 billion baht. These projects encompass 5,600 units, equivalent to a total area exceeding 1 million square meters, all of which have been completely sold out, achieving full quota sales to foreign customers.

The success is underpinned by a proficient team capable of strategically developing projects that adapt to evolving customer needs in terms of design, construction, marketing, and sales. Additionally, RML's international partnerships across various facets of development further enhance our capabilities. This positions RML favourably to extend our investment platform, delving into more lucrative markets such as international portfolio investment, which promises higher and more immediate returns.

Initial indications reveal a substantial interest from numerous funds and investors in our innovative business model. The company holds confidence that the establishment of this Real Estate Financial Platform will be a transformative move, leading to a turnaround and recording a profit in 2024.

In line with the 2024 business plan, the company is strategically positioned for robust operating results and sustained growth by focusing on efficient investment management and emphasizing an asset-light strategy. This approach involves forging collaborations with landowners to develop projects, eliminating the need for land banking. This not only reduces costs but also accelerates project timelines.

A key component of this strategy involves an increased proportion of project launches, with a specific emphasis on low-rise projects to maintain liquidity. The company aims to launch three low-rise ultra-luxury projects across different locations, with a combined value of 16,000 million baht.

These projects include a 3,000 million baht venture in the heart of Sukhumvit, featuring an average selling price ranging from 400 to 700 million baht per unit. Additionally, a branded ultra-luxury villa project on Kamala Bay in Phuket, valued at 12,000 million baht, is planned with an average selling price of 600 to 1,000 million baht per unit. Lastly, there will be a low-rise ultra-luxury project on the Chao Phraya River, with a value of 1,000 million baht.

This strategic shift towards low-rise projects, coupled with efficient investment practices, positions the company for strong financial performance and sustained growth in 2024 and beyond.

Additionally, the company aims to ensure a consistent cash flow and maintain high liquidity by establishing a private equity trust to own and manage the country's premier Grade A+ luxury office building project, 'OCC' (One City Centre). Spanning 61,000 square meters, 'OCC' stands as the epitome of office building excellence in Thailand, situated in the prime CBD Phloen Chit location adjacent to the Phloen Chit BTS station. Notably, the building features a connecting bridge to the BTS station, Wireless Road, and the Central Embassy, enhancing its accessibility and prominence.

'OCC' has attracted significant attention and is considered a landmark project, achieving an impressive 70% occupancy rate for both office and retail spaces. The project has garnered interest from renowned tenants such as The Boston Consulting Group (Thailand), BNP Paribas, Amadeus Asia, Marubeni, and several companies within the Mitsubishi Group, reaffirming its status as a trusted and highly-regarded office building for world-class companies.

To optimize the valuation and provide the highest return for shareholders, the company is structuring a private equity trust. This innovative approach allows new investors to participate in this venture, ensuring that 'OCC' continues to flourish as a premium office building with the support of additional investment. The established trust model is designed to offer the project the optimal valuation while delivering substantial returns to shareholders.