As everyone knows, Noble Development Public Company Limited (NOBLE) is one of leading property developers with a unique residential house design that exclusively focuses on high-end luxury and premium residences.
But lately, there weren’t many NOBLE’s projects launched unlike other property developers, moreover, there are a ton of houses yet to be sold as the home value is quite high, coupled with a problem of land prices in the prime areas.
However, after the company’s shareholder and management team restructuring, NOBLE changed its strategies to focus more on middle class clients in order to boost efficiency in cost management. Thus, NOBLE teamed up with Srisawad Corporation Public Company Limited (SAWAD) to cooperate in AMC namely SWP Asset Management Ltd., (SWP) by acquiring 20% of total issued and paid-up share in SWP, a subsidiary of SAWAD which is primarily engaged in the business of NPL and NPA management.
This investment is believed to expand business opportunities utilizing NOBLE’s real estate expertise to manage and turnaround the distressed assets, and at the same time, SWP will be able to increase return on its assets with the assistance from NOBLE’s real estate expertise.
For the advantages, NOBLE would recognise revenue and earnings from SWP and will be benefited from further development of SWP’s existing assets, particularly the lands, which could be in the form of new recurring income for NOBLE.
Lastly, NOBLE will have plenty of land for future developments, lessening the concern over location and cost for upcoming residential construction projects.