20 | FORBES ASIA APRIL 2018
ness is really shopping,” he says. Siam’s Chadatip is indeed best
known for her company’s high-end malls in the Siam district.
But her Icon project will ofer apartments at he Residences at
Mandarin Oriental’s 52-story tower and the 70-loor Magnolia
Wa t e r f r o n t Residences, and boasts big-name partners. Magnolia
Quality Development is chaired by hippaporn Ahriyavraromp,
daughter of Charoen Pokphand Group Senior Chairman
Dhanin Chearavanont. Magnolia and CP each have a 25% stake
in the project, while Siam Piwat has 50%.
Sansiri’s developments are not as grandiose, although its 98
Wireless is the most luxurious condominium project mounted
by the company. Located near Lumpini Park and some of the
major embassies, the 25-story building with only 77 spacious
units has commanded some of the highest prices paid for
residential property in Bangkok. In general, its projects appear
to be less risky than the megaprojects, involving only a fraction
of the capital, so it’s on the hook for less if conditions change.
he company also has a mix of diferent types of projects, so its
portfolio isn’t dominated by a single, giant project aiming to sell
units at sky-high prices.
Much of the growth for midrange property in Bangkok has
migrated along the expanding mass-transit lines and away from
the soaring land prices of the central districts. Sansiri part-
ners with BTS Group—which built and operates the overhead
Skytrain—to erect condominiums along the new lines. A ive-
year plan budgeted $ 3 2 billion for 25 projects. So far, a dozen
projects have been launched and have sold briskly. “It’s really
a no-brainer,” says Chutrakul. “We capture the middle market,
using BTS as an anchor. he results have been phenomenal.
Partnerships these days are important.” He adds that increasing
challenges demand lexibility and new strategies.
his was the catalyst for the decision to invest in six com-
panies in November. he lion’s share was $56 million paid for a
35 % stake in Standard International, a small hotel group with
famed properties in New York, Los Angeles and Miami. he
other investments: $12 million in JustCo, a Singapore-based
co-working group; $6.6 million in Hostmaker, a London-based
management company for Airbnb hosts; $6 million in Monocle;
and $ 3 00,000 in Farmshelf, which makes indoor-farming shelf
systems for urban dwellers who want a bit of greenery and to
grow their own vegetables for salads. JustCo will launch its irst
co-working space in hailand in May, while Farmshelf will be
tapped for Sansiri’s high-end projects later this year. Sansiri
President Srettha havisin says the investments weren’t as sud-
den as they seemed but followed about a year of planning and
review: “he it had to be right.”
Chutrakul is looking beyond hailand for customers, and
for good reason. Although political and economic worries have
scared away some foreign buyers, investment continues to low
from Asia and the Gulf. Sansiri estimates that 25% of its sales
go to foreign buyers, and 70% of those are from China. hat’s
partly because Sansiri has followed the money, opening oces
in Beijing, Shanghai, Guangzhou and Shenzhen. Hong Kong
accounts for about half its China sales; Sansiri opened an oce
there in January. Another is planned for Dubai to serve the
growing Gulf market.
Part of it is simple logic. “Real estate tends to follow GDP,”
notes Chutrakul. “If the GDP grows, then business is good.”
Lately, hailand’s economy has rebounded, growing by around
3% a year, so Sansiri has been growing
by around 5%, “maybe a little more,” he
says. But in uncertain times, it doesn’t
make sense to be dependent on the same
buyers, he says.
Chutrakul learned some of the hard-
est lessons two decades ago, when the
inancial crisis swept the region, wiping
out vast tracts of wealth. Many compa-
nies went under, especially the ones that
had extended too much credit, such as in
banking and real estate. Sansiri sold of
its inventory, survived and was among
the irst hai companies to successfully
clear their debt and restart.
Foreign investors looded the region, buying up distressed
assets. By a fortuitous turn of events, Sansiri received an invest-
ment from Starwood Capital Group, which later assembled
one of the world’s biggest hotel portfolios. hey sent a young
employee to work with Sansiri: Amar Lalvani. Fast-forward
two decades, and he’s among the executives onstage at the gala
announcing the Sansiri investments. He’s now CEO of Standard
International. “I lived in hailand nearly two years, so really got
to know Sansiri,” he says, enthusiastic about collaborating again.
Chutrakul believes that the Standard brand could be ex-
ported to premier cities in Asia, perhaps with residential units
alongside. “here are lots of possibilities,” he notes. He also
wants to leverage the Monocle brand. Sansiri is far along with
planning for the irst Monocle residential building in hailand,
complete with a Monocle cofee shop and trendy Monocle
ittings. hat should open within a year, and Chutrakul says it
could work in other cities in Asia and beyond. “hese invest-
ments are just the start,” he says. “We invested a small amount
to get a window to the world.” Expansion and adding new tech-
nology are critical, even to established industries such as real
estate, he says. “Today it’s about survival. It’s not just proits, it’s
survival.”FORBES ASIA
SANSIRI
“WE INVESTED A SMALL AMOUNT TO
GET A WINDOW TO THE WORLD.”
EXPANSION AND ADDING NEW
TECHNOLOGY ARE CRITICAL. “TODAY
IT’S ABOUT SURVIVAL. IT’S NOT JUST
PROFITS, IT’S SURVIVAL.”F