Developer AP embraces disruption to build on 2018 counter-trend growth

Real Estate February 12, 2019 15:28

Major residential builder AP (Thailand) Public Co Ltd expects to close the year 2018 having emerged as the country’s second largest property developer in terms of revenues, experiencing 30 per cent overall growth despite the industry’s overall softening trend.

In 2018, AP Thailand enjoyed overall record growth in its business operations, said the company’s chief executive, Anuphong Assavabhokhin, and is expecting year-end growth topping 30 per cent over the previous year.

“AP Thailand will emerge as No 2 among the highest earning property developers in Thailand,” he said. “Our trend-bucking growth is a result of achievements enjoyed by all our businesses, including our core real estate business. In 2018, we expect our products, whether it be condominiums or low-rise single detached houses and townhomes, to have satisfying outcomes as suggested by the results from the year’s sales and ownership transfers.”

Other AP businesses also performed well. Property agent BC, which provides property brokerage services for AP and outside products, also reported a jump in growth with the value of properties brokered by the company reaching Bt12 billion, making it easily the country’s No. 1 property agent.

“SMART”, an AP business that provides full-service property management with more than 20 years of experience, currently serves more than 55,000 families in more than 200 projects owned by AP and other developers. Both BC and SMART are expected to continue to extend their services and elevate the value of their customers’ property.

AP Thailand is in a period of transition from solely a property developer and will enter 2019 following the concept of “AP world, a new vision of quality of life”. It aims to offer a blueprint for a good quality of life tomorrow, complete with an ever-evolving ecosystem, the company said in a press release on Tuesday. 

In its quest to maintain a competitive advantage and sustainable growth, it has unveiled three new disruptive businesses. The first, VAARI, is creating an ecosystem that supports quality of life management. The second, CLAYMORE, creates design innovations to meet the various needs of residents, including their unmet needs. And the third, SEAC aims to disrupt traditional organisational learning and that of Thai society through new process introduced by world-class institutes.

AP Thailand sees the three new businesses as helping it build on its vision and turn its commitment into reality, according to the press release. That is, to create and deliver the best quality of life for Thai people with the ultimate goal of delivering quality living experiences, creating innovations to meet unmet needs and improving the capability of a new generation of leaders as the company drives to double total revenues of AP Thailand and affiliated businesses to Bt60 billion by 2022.

The new companies will have their operations and main goals as follows:

VAARI Co Ltd will create a life-management ecosystem with the goal of making tomorrow’s living more efficient, realising the ideal residential society, minimising residents’ pain due to redundancy and complication, and elevating the quality of life through design and innovation that matches the user’s lifestyle.

CLAYMORE Co Ltd will create design innovations to meet the different needs of residents in all segments, including their unmet needs. With this company, AP Thailand has launched an in-house programme where its new generation of in-house innovators will come together to work on interesting initiatives. Claymore will act as an innovation lab with the goal of ensuring that every innovation developed is tangible and practical through the Stanford Design Thinking process.

SEAC (Southeast Asia Centre) will be the largest full-service centre in Asean for the development of leaders and high-level executives. It will focus on building the readiness and capability of people to keep abreast of changes in the world of today and tomorrow. It will collaborate with a world-class education institution such as Stanford University, which shares the same learning perspective to elevate the capability and thinking process of leaders in Thailand and the region to the level of world-class leaders.

“The new vision is crucial to AP Thailand’s transformation to become a property developer that not only delivers residences, but also delivers a good quality of life to people, not restricted only to AP customers,” said Anuphong.” We expect that the extension of business under the ‘AP World’ concept will realise our goal to double total revenues and drive AP Thailand and affiliated businesses to Bh60,000 million within 2022.”