SC Asset plans rebranding, diversification into non-property businesses next year

SET-listed developer SC Asset Corporation plans to venture into non-property businesses next year to diversify its risks amid a slowing housing development sector.

The company also aims to rebrand itself with a new logo in the second half of this year to appeal to a broader range of consumers.

The move comes as the housing development sector continues to face challenges due to high household debt, excess supply, and low consumer confidence, which are expected to persist this year.

"These challenges made it more difficult for residential developers to sell and transfer houses last year," said SC Asset chief executive Nuttaphong Kunakornwong.

"Launching new projects is also a struggle under such circumstances, further compounded by geopolitical volatility."

To diversify its risks, SC Asset is exploring a new business venture for investment next year that is not related to the property sector, Mr Nuttaphong said.

The company will start by integrating customer services with its home service and solutions application, Rue Jai, and its utility token, Morning Coin.

"We will leverage these assets to pave the way for the new business," he said.

Besides the plan to diversify into non-property businesses, SC Asset will place greater focus on recurring-income ventures, particularly in the hotel and industrial estate sectors, which have experienced robust growth since last year.

In mid-2025, the company will launch two new hotels: Kromo Bangkok near Sukhumvit Soi 29 and The Standard Pattaya in Na Jomtien.

They are being developed through joint ventures with Japanese property firm Daiwa House and contractor Syntec Construction, respectively.

Warehouses across three locations, including 78,000 square metres at Bang Na KM 20, 46,000 sq m in Laem Chabang, and 37,000 sq m in Amata City Chonburi, will be launched in the second and third quarters of the year.

SC Asset will also invest further in apartment rentals in the US, where it currently has five projects.

However, the company will not be making new investments in office spaces for rent, which currently tally 119,568 sq m across six towers, due to an oversupply in the market.

"The office market is still facing an oversupply of 600,000 sq m in Grade A and B office space, which will take two to three years to clear out," said Mr Nuttaphong.

"We will focus on fully leasing out our existing office space and maintaining high occupancy rates."

SC Asset aims to increase its earnings before interest, taxes, depreciation and amortisation (Ebitda) from recurring-income businesses from 20% to 25% of total revenue over the next few years.

"We expect Ebitda from recurring-income businesses to grow by 10-15% this year, driven mainly by the hotel and industrial estate sectors," said Mr Nuttaphong.

"Our recurring-income businesses will be a key growth driver for the company in the next three to five years."

Due to unfavourable sentiment and existing excess supply, SC Asset will launch only 15 new residential projects worth a combined 28 billion baht in 2025, down from 17 projects worth 31.8 billion baht last year.

"With the current residential supply, which will take at least five years to be sold out compared to two to three years under a healthy situation, the residential market will remain sluggish and will take a few years to return to normal," said Mr Nuttaphong.