MK enters management

SET-listed M.K. Real Estate Development Plc has set up a subsidiary, Yours Property Management, to tap into the property management business.

Chief executive Vorasit Pokachaiyapat said property management is part of the company’s strategy to generate income from non-residential development business.

“The property management business has potential for growth as the number of new housing projects increases each year,” he said.

According to the Agency for Real Estate Affairs, a consultancy, 347 housing projects were launched in Greater Bangkok last year and 129 were launched in the first five months of 2016.

Founded a few months ago with registered capital of 5 million baht, Yours Property Management aims to become a profit-based business managing non-MK projects. The subsidiary targets revenue growth of 15-20% a year.

“This year we will focus on branding and after-sales service,” Mr Vorasit said. “The new subsidiary will cover five property management services, including finance and accounting, engineering, security and cleaning, juristic person management and community relations management.”

In a bid to reinforce its property management business, executives from Sansiri Plc and Sansiri’s subsidiary, Plus Property Co, were recruited to join Yours Property Management several months ago. One of them was Dusadee Tancharoen, formerly senior vice-president for marketing who had worked with Sansiri for 15 years.

Yours Property Management will handle seven MK projects this year, including the 406-unit August Condominium and Leon Sukhumvit 62, with 58 townhouse units. It will also manage two non-MK condo projects.

Next year Yours Property Management will handle MK’s new apartment Park Court, with 70 rooms in the first phase. Set to be opened in August 2017, MK will invest 1.5 billion baht in Park Court’s first phase of development.

The seven-storey apartment will be located on Sukhumvit Soi 77 near a new campus of Bangkok International Preparatory & Secondary School, with foreign expats targeted as tenants, Mr Vorasit said.

MK shares closed yesterday on the Stock Exchange of Thailand at 4.36 baht, unchanged, in trade worth 7.59 million baht.