LPP Property Management, a subsidiary of SET-listed developer L.P.N. Development Plc, will tap more non-L.P.N. projects, launching a turnkey project consultancy and establishing a joint venture with Synphaet Hospital with the aim of growing annual revenue by 30% from 2023.
Chief executive Surawut Sukcharoensin said Covid-19 had raised more awareness among condo residents about professional services from the property management firm as they were more concerned about hygiene and management when residents in the building were infected.
"During the pandemic, we got more condo projects to manage from firms not related to L.P.N.," he said. "It's an opportunity to capitalise on the rising demand."
At present, LPP manages a total of 234 projects, up from 202 projects in 2021 and 188 in 2020.
Of this amount, non-L.P.N. projects increased to 70 from 65 in 2021 and 51 in 2020, which accounts for 30% compared with 15% a few years ago.
The largest number -- 13 -- was from Ananda Development, followed by Supalai (seven), Land & Houses (four) and some from Pruksa Real Estate and Eastern Star Real Estate.
Of the 234 projects, 212 projects were condos, 20 were low-rise housing projects and two were office towers.
The non-L.P.N. projects, which it began five years ago, were a key driver of LPP's revenue growth in the first half of 2022 with a year-on-year increase of 45%, while LPP's total revenue grew 40% to 472 million baht with a net profit of 60 million baht.
It expected to have about 1 billion baht revenue by the end of 2022, well above its target of 955 million baht.
Last year it recorded revenue of 850 million baht which grew by 20% from 2020.
The largest source of revenue was property management which accounted for 70%, followed by engineering services at 10-15%.
The remainder was from security guard and cleaning services which it started two years ago. These saw a growth of 285% in revenue in the first half at 41.9 million baht.
"We will expand the current construction management business to take turnkey project management as there are a rising number of landlords who are not property developers but want to develop a project on their plot once the full rate of the land and building tax is collected this year," said Mr Surawut.
In the second half, LPP will have a joint venture with Synphaet Hospital in the facility management business. It will manage facilities at six of 15 hospitals owned by Synphaet Hospital within this year.
It aims to have 50 million baht in revenue in 2023.
