AIRA Targets Subsidiary IPO to Fund Silom Hotel Expansion

AIRA operates as a holding company, pursuing investments to develop and strengthen its group businesses before potentially listing subsidiaries on the stock exchange. The company is also open to bringing in strategic partners as co-investors. AIRA Property is expected to file for an IPO toward the end of next year, after its business begins generating profits, while a new hotel project in Silom is expected to begin construction this year.

Ms. Nalinee Ngamsaengtham, Chief Executive Officer of AIRA Capital Public Company Limited, or AIRA, said the company operates under a holding company structure, with its principal investments in two segments: financial institutions and real estate development.

The company’s approach is to invest in and support each business until it achieves growth and operational strength, before considering further investment options. Once an invested business is ready and capable of growing independently, AIRA may consider spinning it off for a stock exchange listing or opening it to investment by major strategic partners, in order to enhance its capabilities and create long-term growth opportunities.

Subsidiary Listing Plan

In its real estate business, the company currently owns Spring Tower, a Grade A office building at the Ratchathewi intersection. The building has a high occupancy rate of approximately 94–95%, with most tenants being leading global companies, reflecting the quality of both the asset and its location. In addition, the future Orange Line mass-transit project, which will have a station in front of the building, is expected to provide further support.

As the business has started generating profits, AIRA plans to list AIRA Property, the shareholder of Spring Tower, on the Stock Exchange of Thailand. The company expects to begin filing its registration statement and prospectus toward the end of next year.

“Our approach is that once a company we invest in becomes strong, it can be spun off. AIRA Property has now started making a profit, so we plan to move forward with its stock market listing and expect to begin filing toward the end of next year,” Ms. Nalinee said.

At the same time, AIRA is continuing to expand its real estate portfolio through a new hotel project in the Silom area. The hotel will have approximately 301 rooms and is currently undergoing the Environmental Impact Assessment (EIA) process.

The company expects construction to begin within this year, with development taking around two to three years before the hotel opens. The project is expected to add recurring-income assets to the AIRA Group in the future.

Potential REIT Injection

The company is also considering transferring its real estate assets into a Real Estate Investment Trust, or REIT, within approximately the next two years. The objective is to improve asset-management efficiency and create opportunities for further investments.

In the financial business, which remains AIRA’s key area of expertise and long-standing experience, the outlook continues to be strong. One of the standout performers is AIRA & AIFUL, or A&A, a joint venture with a Japanese partner that has more than 30 years of expertise in the personal-loan business.

During the first one to two quarters of this year, A&A generated profits of more than THB 140 million, reflecting its recovery and potential to contribute returns to the AIRA Group.

Meanwhile, AIRA Factoring has continued to generate profits in almost every month. AIRA Asset Management has also shown positive progress through managing investment portfolios for institutional clients. Overall, the financial business remains another important growth driver for the group.

Strategy for Navigating the Economy

Regarding the uncertain economic environment, Ms. Nalinee said that the key to operating a business in Thailand is flexibility, as circumstances can change rapidly. Entrepreneurs therefore need to adapt and respond promptly to immediate challenges.

AIRA’s strength lies in its experienced management team, which has worked together for more than 10 years. This enables the team to coordinate effectively and solve problems quickly. The company will continue to prioritize maintaining the strength of its existing businesses while seeking new investment opportunities for the future.

The company believes that Thailand’s economy can experience significant fluctuations at any time. Normally, the third quarter tends to slow down due to seasonal factors, requiring careful business management. However, overall conditions typically begin to improve toward the end of the fourth quarter and continue into the first quarter of the following year.

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Company Snapshot : AIRA จ่อดันบ.ลูกเข้าตลาด ลุยขยายโรงแรมสีลมปีนี้ | Thunhoon