SET-listed developer Siamese Asset plans to apply for green certification for all of its new projects, hoping to qualify for a green loan from the World Bank Group's International Finance Corporation (IFC).
Chief executive Kajonsit Singsansern said developing a property project to be certified for EDGE green building standards means additional costs, but these expenses can be offset or compensated.
"For residential projects, where the costs are typically passed on to buyers, the additional expenses associated with implementing green building standards can be offset by reducing the marketing costs we allocate," he said.
At its single detached housing project, Monsane Exclusive Villa Ratchapruek-Pinklao, which received an EDGE preliminary certificate, each unit has a solar rooftop system installed with a capacity of 10 kilowatts per hour, at a cost of 200,000 baht.
With a unit price of 25 million baht, this cost accounts for less than 1% of the total.
The company plans to deduct this cost from the marketing budget, which is 3% of the project value, Mr Kajonsit said.
Launched at the end of last year, the project's 51 units each have a usable area of 400 square metres on a 100-square-wah plot, with 20 units booked so far.
EDGE, or Excellence in Design for Greater Efficiencies, is a green building certification system developed by IFC. EDGE certification focuses on promoting resource-efficient and sustainable building practices, particularly in emerging markets.
Another Siamese Asset project granted an EDGE preliminary certificate is Tribe Living Sukhumvit 39 Hotel on Sukhumvit Soi 39.
The costs of implementing green building standards for a commercial project are higher than for residential developments, but the company anticipates breaking even within five years thanks to energy savings, he said.
"Three years ago, the company sought alternative low-interest loans as our credit rating was BB+ at the time," Mr Kajonsit said. "Our overall interest cost is 5.2%."
With guidance from Asian Development Bank, Siamese Asset began implementing green building standards and applying for EDGE certification in 2020.
"We obtained our first green loan from UOB with an interest rate of 4.9%, but it was a project loan," he said.
"Now we are seeking a longer-term loan with a duration of 10 years."
Siamese Asset also plans to develop an affordable housing project in the Rangsit area and a nursing home in the Taling Chan area, both of which are expected to receive EDGE certification, which also promotes projects that improve social living.
The affordable housing project comprises 400 townhouses with unit prices of 2 million baht. Each unit is projected to have a solar rooftop with a capacity of five kilowatts per hour.
The company won an EDGE Champion award yesterday, which recognises companies that display a dedication to sustainability and implement multiple projects with EDGE certification.
Siamese Asset is the first company in Thailand to achieve this recognition.
