under the project name BDMS Silver Wellness & Residence Located opposite Lumpini Park Around the corner of Sarasin Road and Lang Suan Road, total area of 13 rai 60.18 square wa, with a 30-year long-term lease of land and can be renewed for another 30 years from the Crown Property Bureau.
The investment budget is divided into 2 parts, namely the long-term land rental cost of 9,145 million baht and the cost of construction, equipment, medical equipment. and other assets of 14,400 million baht using the source of funds from the company’s cash flow Borrowing from financial institutions and/or issuing debentures
The project has a total area of approximately 170,000 square meters, consisting of 1. Silver Wellness It is a comprehensive health care center. from prevention, rehabilitation and health promotion for people of all ages
2. Silver Residence It is a residential building with facilities, focusing on the Silver Age group, aged 50 years and over, both Thais and foreigners who wish to stay in Thailand for a long time. Get an aging society with a prominent location in the heart of the city Focus on green areas close to nature Construction takes 6.5 years and is scheduled to open in 2029.
However It can be seen that since the company announced the development of new projects, BDMS share price has dropped for 2 consecutive days (26-27 May), totaling 5.62%, closing at 25.50 baht. Because investors are worried that there may be a capital increase. And it still takes a long time to start making money, and it looks like it will overlap with the BDMS Wellness Clinic project on Wireless Road.
which laterThe management has confirmed that there is no need to increase capital because it will gradually pay. The first installment of the land lease will be paid on the contract date of 2,503.50 million baht, and the remaining 6,641.50 million baht will be paid on the date of the start of the contract period. (within the first month after the completion of the construction period)
and this project will help expand the health care business after seeingThe first project, BDMS Wellness Clinic on Witthayu Road, in 6.5 years, the capacity to accommodate users (Capacity) will be full, from the current 80%.
The company plans to expand its health care business to reach the Silver Age and health-conscious people, both Thais and foreigners more. It also aims to become a leader in anti-aging medicine and rehabilitation services in Asia. This will be another important part in promoting Thailand to become a center of health tourism.
sideNomura Securities Pattanasin It states that the BDMS Silver Wellness & Residence project will enhance the potential of providing comprehensive health services. and does not compete in the market with the Movenpick BDMS Wellness Resort project previously invested
Initially, the two-building housing project will begin pre-sale in 2026, with the expected transfer and revenue recognition in 2029. The Wellness project will provide a wider range of services than the original project expected to open in 2029.
However, since it is a large investment compared to previous investments And it takes a long time to start making money. As a result, the market may be concerned about the success of the project. and the impact of initial amortization of project costs and expenses, which will drag on the performance of BDMS in the early stages of its revenue generation.
But the research team views that in the next 3-5 years, this project will have a limited impact on BDMS’ earnings forecasts and be a new S-Curse that is relevant and supports its core business.
KTBST Securities Said that I like that BDMS has penetrated the Wellness business more in line with the global trend, whereby BDMS aims to make Thailand a Wellness Hub, currently the BDMS Wellness Clinic project has a positive EBITDA since 2021 as planned. The new project, BDMS Silver Wellness & Residence, will help complement BDMS’s Wellness business, supporting long-term revenue growth.
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