Phuket real estate will never die! ASW positions TITLE as its flagship product to attract foreign clients, boosting its backlog to 3 billion baht.

Amidst the challenges facing the Thai economy and real estate market due to slowing domestic purchasing power, the overall picture for an international tourist city like... Phuket Province Conversely, Phuket is showing remarkable growth and remains a captivating gem that never loses its charm. This is due to Phuket's readiness as a world-class economic and tourism hub, coupled with warm weather year-round, comprehensive infrastructure, international schools, high-standard hospitals, and a yacht marina ready to cater to high-income consumers from around the globe.

The Andaman Pearl Battlefield: A City That Never Sleeps and the Global Trend of Permanent Residence

These positive factors have fundamentally changed travel behavior towards Phuket. From being merely a vacation home, it has evolved into a permanent resident destination for expats, particularly buyers from Europe, Russia, and other countries seeking relocation or a secondary vacation spot with a high quality of life. The Phuket real estate market has therefore become a key battleground, with leading developers vying for land to drive new growth.

Mr. Kromchet Wiphanphong, Chief Executive Officer, AssetWise Public Company Limited (ASW) To highlight the potential of this location: “As long as the seasons remain like this, people from Europe, Russia, and colder climates will always want to come to Phuket. Phuket will never die just because of this weather and scenery. The influx of foreigners isn't just temporary tourism, but rather permanent residents who will replenish the population with high-quality, high-purchasing power assets, creating long-term economic sustainability.”

From campus condos to a big deal expanding into the Andaman region.

A key driver in AssetWise's expansion into Phuket, a market already established and distinguished for developing campus condos around educational institutions in Bangkok and its suburbs, as well as its expansion into the Eastern Economic Corridor (EEC), is its acquisition of a 68.87% stake in Rompho Property Public Company Limited (TITLE), a Phuket real estate expert with over 15 years of experience. This merger and acquisition (M&A) combines ASW's expertise in innovation, design, and product development with TITLE's sales ecosystem, international agent network, and in-depth location expertise.

The next step in ASW and TITLE's growth isn't just about building condominiums for sale (build-to-sell), but about creating the most complete "Lifestyle Ecosystem" in Phuket through three main dimensions:

• Residential Diversity Development: Expanding development from resort/leisure style condominiums to luxury pool villa projects such as Villa Estella in Nai Yang and Casa de Monte, a pool villa project in the Koh Kaew area in a joint venture with Boat Development.
• Living Services Businesses and Legal Entities: Establish a property management team and rental property care service provider with insights into the needs of expat residents, facilitating the process and generating attractive rental yields for investors.
• Business group generating recurring income (Hospitality & Recurring Income): Enhance your lifestyle with the Mingle branded community mall, the luxurious The Salute beach club, and the acquisition of international hotel brands such as Staybridge, Hotel Indigo, and voco to manage your property and generate consistent long-term cash flow.

This joint venture marks a historic strategic investment for the company. It combines ASW's strengths in facility design and management systems with TITLE's local know-how and deep understanding of international customer behavior. This partnership will enable the group to accelerate the expansion of its real estate projects, reaching 17 projects totaling over 2,500 units across prime locations in Phuket, including Bang Tao Beach, Kamala Beach, Kata Beach, Nai Yang Beach, and Rawai Beach.

Mr. Kromchet reflected on his vision for this investment, stating that: "Phuket is a unique and evergreen market, thanks to its climate which attracts people from cooler climates who seek relaxation. Entering the real estate market here isn't just about building condominiums to sell and then closing the project, but about attracting a high-income, quality population to live here permanently. This will be a key driver in stimulating the economy and the circulation of money in Phuket in the long term."

The "agent model" strategy and corporate DNA boosted the backlog dramatically.

The key drivers that enable TITLE to consistently generate multi-billion baht in sales every year stem from two main strategic approaches that are targeted and address the context of international markets:

• Building trust and loyalty with a network of international agents: TITLE primarily focuses on sales through international brokers and agents, adhering to principles of honesty, protecting agent interests, and refraining from direct sales that compete with agents. This integrity in business practices has built strong trust within its global network of brokers, making TITLE projects a top choice for international clients.
• Managing a legal entity with DNA Hospitality: The company has established a supporting business, Z-Welfare (S-Wise), to manage condominium properties and juristic persons, truly understanding the behavior of expatriates who purchase condominiums. This includes services ranging from cleaning and maintenance of units while owners are away in their home countries, to assisting with rentals to generate returns, and even organizing Thai festivals to create a warm and welcoming residential community.

Furthermore, in terms of quality, the group's sales backlog is strong and low-risk, due to its structure of high cumulative down payments ranging from 25% to 75% prior to property transfer. This results in a very low, almost zero, cancellation rate.

Mr. Kromchet To emphasize that... “Foreign customers who purchased units in our projects are those with genuine purchasing power and have consistently made down payments, leaving only a few percent remaining to be paid by the time of ownership transfer. This demonstrates that they are buying for actual residence rather than speculation. With such a stable financial structure, ASW's credit rating has been upgraded from BBB- to BBB, a rare achievement in the current market conditions.”

An in-depth analysis of statistics and financial growth targets.

The financial performance and results of the ASW and TITLE groups reflect tangible operational success:

• Total sales backlog: Currently, the group of companies has a total sales backlog exceeding 30,000 billion baht, with sales from TITLE in Phuket accounting for more than 20,000 billion baht.
• Revenue target for 2569: TITLE has set a revenue target of 6 billion baht, having already generated over 2 billion baht in the first half of the year. Furthermore, it has ready-to-move-in units in the third quarter, valued at approximately 4.5 billion baht or around 400 units.
• Flagship Project: "THE TITLE Heritage Bang-Tao" has been launched, a large-scale project worth over 6,000 billion baht. Situated on over 15 rai of land, it comprises 789 residential units and features a distinctive Neo-Classic design blended with the unique Peranakan architecture of Phuket.
• Landbank: (Land awaiting development) TITLE has a land bank of over 200 rai in prime locations throughout Phuket, sufficient for developing new projects to support growth over the next 3-5 years, representing a total future project value of approximately 40,000 billion baht.

Mr. Kromchet expressed confidence in the financial performance figures, stating that: “Our backlog, exceeding 3 billion baht with over 2 billion baht from Phuket, is concrete evidence that we are on the right track. Maintaining financial discipline and choosing the right locations ensures we have a stable and continuous income stream for many years to come without worrying about fluctuations in the domestic market.”

Next-step vision: Creating a “Lifestyle Ecosystem” and giving back to Phuket society.

ASW and TITLE's future plans are not limited to being just residential property developers, but aim to expand their business portfolio into a comprehensive "Lifestyle Ecosystem" to create superior living experiences and generate sustainable recurring income.

The business expansion plan for services and lifestyle encompasses various dimensions, including investments in international hotels such as Hotel Indigo Phuket Nai Yang Beach and voco Phuket Bangtao, the development of retail spaces and community malls under the Mingle brand, the opening of the luxury beach club The Salute, and plans to expand into the Health & Wellness business, aiming to increase recurring revenue to 10% of the total portfolio in the future.

Furthermore, to reinforce its commitment to growing alongside the local community, TITLE officially relocated its headquarters from Bangkok to Phuket. This ensures that business income taxes accrue directly to the local government, resulting in the company ranking among the top 10 highest-taxpaying organizations in Phuket last year.

Mr. Drong Hutachuta, Chief Executive Officer of Rompho Property Public Company Limited (TITLE). In conclusion, regarding the direction of sustainability: “The company's core principle is to be a true real estate developer for the people of Phuket. Relocating our tax base and office to the actual location aims to give back to the community and we are ready to participate in infrastructure development, environmental protection, and supporting youth education in the area. Because the sustainability and growth of Phuket are key drivers for the company's stable and sustainable long-term growth.”

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