MQDC Tasks' DGTO Prosperous' with Global Investments

Modern businesses must also focus on the aspects of society, community, environment, technology and innovation, as these are crucial factors that help strengthen the business foundation.

The principle aligns with the missions and goals of DTGO Prosperous (DTP), an investment arm of Magnolia Quality Development Corporation Limited (MQDC), one of Thailand's top property development firms. 

MQDC is a property arm of DTGO Corporation Ltd., focusing on residential and mixed-use properties and theme projects development, with the well-known flagship project "The Forestias" located on Bang Na-Trat (Debaratna) Road in Samut Prakan province.

DTP serves the group as its global investment company that invests in high-potential properties worldwide to generate regular income for the group. DTP also looks for investment in various innovation businesses to strengthen its parent portfolio under MQDC's philosophy of "Well-Being For All", which emphasises securing sustainability via innovation.

DTP recently unveiled its latest investment plan targeting four branches of business: global investment, asset management, fund management, and VC & innovative investment to further strengthen the DTGO ecosystem.

Hansa Susayan, Chairman of the Board of DTGO Prosperous Ltd, said that DTP aims to be a global investment company that focuses on social and environmental care while conducting business in a sustainable way. The mission is guided by MQDC's philosophy and DTGO's concept of "Adding Value in Everything We Do", for the sake of the public.

Hansa said all of the company's investments are implemented under the principle of ESG (environmental, social, and corporate governance). "We emphasise that our business operations must have low emissions, create positive outcomes for society, promote community participation, and be fully transparent under the corporate governance principle," he said. "Most importantly, all operations must comply with the company's sustainability goals."

Thiti Thongbenjamas, DTP's president, added that the company's investments would focus on brownfield projects and high-potential assets to secure future opportunities in the four main business groups:

1. Global investment – DTP is eyeing investment in Thailand and overseas markets, including the United States, Europe, Japan, UAE, China, India, Vietnam, Singapore, Australia and South Africa. Just two months before the Covid-19 outbreak, the company had invested in several hotels in the UK under the Hilton, IHG and Marriott groups with a combined capacity of some thousands of rooms.

"The global hotel industry was at its peak when we bought these hotels. Over the years, their values have increased to more than the price we had bought," said Thiti. "Furthermore, we also plan to expand our investments to related businesses such as office buildings, dormitories, apartments, and healthcare technology."

2. Asset management – After acquiring the assets, DTP has improved the management and assets facilities to accelerate the hotels' value. Thiti said the company had retained over 1,200 employees in the UK with no salary cuts during the lockdown, which made the hotels ready to operate as soon as the restrictions were lifted instead of facing labour shortages like other establishments.

Thiti added that DTP also applied heat-to-power conversion technology to minimise environmental impact and locked in energy rates to cut electricity bills. The company also plans to install solar panels on hotels' rooftops to help with electricity generation.

"The company will continue to adjust the investment portfolio of hotels assets in the UK according to the changing lifestyle of the British people, who are now preferring to stay at hotels in big cities," he said.

In the social responsibility aspect, DTP also plans to provide support to communities surrounding its hotels in Manchester as a pilot project before expanding to nearby cities. In Thailand during the pandemic, The Forestias project and its partners provided aid to nearby communities by establishing the "Sanam Saeng Haeng Jai" field hospital in Samut Prakan to help treat infected patients. DTP also channelled 2 per cent of its highest earnings for the initiation and operation of various charity projects, including the Buddharaksa Foundation, which supports the education of underprivileged children in remote areas.

3. Fund Management – DTP recently established DTPHREIT, a real estate investment trust (REIT) valued at 4.1 billion baht in September. DTPHREIT invested in MQDC's hotels and service apartments in high-potential areas, such as the Waldorf Astoria Bangkok hotel, Magnolias Ratchadamri Boulevard service apartment, and U Khao Yai hotel. DTPHREIT is a buy-back type REIT in which the original owners commit to buying back their properties when the investment period is over.

4. VC & innovative investment – To ensure growth opportunities in the changing world that is not limited to only the property field, DTP channels its investment to venture capital and innovation with scalable business models. Examples of these investments are REDDS Technology Fund and chatbot technology.

Thiti said DTP's investment strategy emphasises three aspects: Business synergy – the projects that add value and expand under the DTGO group; Monetisation – Can generate income to support continued re-investment; and Risk diversification in all types of risks – industrial, location, and financial.

"By avoiding investing in similar fields to generate the highest turnover possible, this strategy helps minimise investment-related risks, especially when an economic crisis emerges," he said. "DTP aims to be an asset-light company that buys an asset, expands, develops and then sells it while still managing the asset via REIT or private property developers. This strategy enables us to raise funds and secure new partners for new projects, ensuring continued investments in various businesses."

"These partners help DGTO Prosperous become a global investment company that focuses on social and environmental care in the communities we invest in to ensure sustainable growth of all parties," said Thiti.