Business Operation of Each Product Line

Business Operation

Type of Products and Services

The Company and subsidiary companies conduct a business in two business groups i.e. real estate development business and service business. The details are as follows:

Real Estate Development Business The business is conducted by 1. L.P.N. Development Public Co., Ltd. 2. Pornsanti Co., Ltd. L.P.N. Development Public Co., Ltd. operates real estate development business with the aim to sell residential condominium projects targeting middle to lower-middle income earners. In 2017, the target group of customers is expanded to include lower-middle to upper income earners. The differentiation strategy in creating uniqueness in terms of products and services is applied. The condominiums units and common area of the projects developed by the Company are developed under “LPN Design” concept which is in accordance with the Principles of Universal Design. The common area is specially designed as a co-living space for the residents of all age groups, whether they be children, young people, working people or the elderly. Moreover, after-sale service in the form of community management under “Livable Community” strategy has been developed. It is later developed into “Livable Community For All” strategy with an emphasis on the quality of life of the residents of all age groups. The strategy helps create the uniqueness of the Company and builds confidence among customers. Cost leadership strategy is also applied and becomes the strength of the Company enabling its competitive advantage. The Company has identified the position of each product for clarity and consistency with the needs of the target group. The products of the Company are categorized into two groups, namely, the first city home and the second home as a vacation condominium. The target group of the second category is the customers of the Company who wish to have their own vacation condominium. 1 The First City Home : Apart from developing residential condominiums in Bangkok and peripheral area, since 2012 the Company has also developed projects in other provinces i.e. Chonburi, Udonthani, Phetchaburi and Pattaya including the development of Baan 365, a premium housing project. The brand positioning is as follows:

“Baan 365” It is a flagship project of premium single house and townhome of the Company. The location is meticulously selected. The first project is developed on Rama 3 Road as it is right in the city and yet private.

“The Lumpini” It is the premium brand developed for the special occasion of the 24th year of operation of LPN. The project is situated on the highest potential location in Soi Sukhumvit 24 surrounded by convenient facilities. The design of the building is Y-shaped in which all condominium units are able to enjoy the outside view. It is perfect for simple and yet luxurious living in the heart of Sukhumvit 24 Road.

“Lumpini Suite” It is the high-end brand developed to respond to residential needs of business owners or high-ranking executives who are in search of the most comfortable living and are able to afford expensive residences. The location for the development of such projects, therefore, is in central business district near major transportation systems such as BTS, MRT and expressways. The project is fully equipped with convenient facilities. The number of units is minimal so the residents are able to enjoy the highest standard of living and privacy.

“The Selected by LPN” It is the mid-to high-end brand that develops the product value to match the unique lifestyle of target groups. The Selected Kaset-Ngamwongwarn by LPN is the first project developed under this brand. It is located on Ngamwongwarn Road between Kaset Nawamin and Bangkhen intersection and is opposite to Kasetsart University. The target customers are students of Kasetsart University. The project is developed as a campus condominium.The design of common areas is perfect for studying i.e. spaces for group working and quiet reading corners. There are areas for brainstorming, exercising, and outdoor activities.

“Lumpini Place” It is the upper-middle brand developed for people who are working at the managerial level aged 30-40 years old. The project location is in densely populated area and near main streets. It may be in or around central business districts and is conveniently located near modern transportation system. The project is fully equipped with convenient facilities for everyday life. “Lumpini Place Sathorn” on Narathiwasratchanakarin Road is the first project developed under this brand. The condominium units with the size of 30 and 60 square meter are initiated under “LPN Design” concept which focuses on the functionality of space. “Lumpini Place” is the model of City Condo, the residential condominium projects along BTS and MRT route with the price of around one million THB developed by the Company in 2001. City Condo projects are successful and positively received by the customers since it meets the needs of the working people in the city.

“Lumpini Park” It is the upper-middle-range brand developed for large-scale community. “Suan Ruam Jai,” a community park which is a common area where family members and residents of the projects can do activities together, is initiated to add value to the product and service. It is in line with the concept of creating a “Livable community” in which the residents live together in harmony under “Togetherness, Care and Share” culture. The pilot project is Lumpini Park Pinklao.

“Lumpini Ville” It is a mid-range brand developed from “Lumpini Place” for young professionals and middle-level managers with the age of not over 35 years old who look for convenience in transportation and private residence. The project is located in densely populated area and near work place and convenient facilities such as department stores, schools, etc. “Lumpini Ville” brand is thus an alternative for young people who want to live a life of their own while still maintaining a close bond with their family.

“Lumpini Megacity” and “Lumpini Mixx” It is the brand for various groups of customers developed by the Company in 2011. “Lumpini Megacity Bangna” is a large-scale project situated on Bangna-Trad Road near work place, expressways and convenient facilities such as Central Bangna, Mega Bangna and IKEA Thailand. The project comprises 4,000 condominium units in five residential buildings with 18, 28 and 29 stories in height. Since the price offered is affordable, the project has become immensely successful. As for Lumpini Mixx, the pilot project is Lumpini Mixx Teparak-Srinakarin, which is situated in a high potential location with connections to major public transportation systems. There are no other residential condominium projects developed in the area so it is a blue-ocean location. The project is equipped with full convenient facilities.

“Lumpini Center” and “Lumpini CondoTown” It is the lower-middle-range brand focusing on building a residence for a great quality of life of those who just start their career and are freelancers. The locations of the projects will be in the fringe of urban-outer area which is densely populated. This is a large group of people who are in need of a residence. It is the flagship of the residential condominium development of the Company in order to be the first quality home and the starting point for those who are about to start their lives and build a family.

“Lumpini Township” It is the mid-to low-end brand developed to create an opportunity of owning a home at the affordable. The “Livable Township” strategy is initiated for middle and lower income groups. The first project developed on a 100-rai plot of land in Rangsit is “Lumpini Township Rangsit-Klong 1.” There are around 10,000 units with the size of 21.50 and 26.00 square meter. The project is fully equipped with convenient facilities such as recreational area, community mall and convenient stores to enhance the quality of life as well as great environment and society for the residents.

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The Second Home as a Vacation Home : In addition to the development of urban residential condominiums, the Company has initiated the development of the second home as a vacation home for the customers. The pilot project is developed in Pattaya, Chonburi Province and Cha-am, Petchaburi Province.

“Lumpini ParkBeach” It is the upper-middle brand developed from “Lumpini Park” which combines the atmosphere of Suan Ruam Jai with the liveliness of the seaside atmosphere. The first project developed is Lumpini ParkBeach Jomtien on Jomtien Beach, Pattaya. All the condominium units in the projects are designed to face the ocean so the residents can enjoy the beautiful view. The price is also extremely affordable and the project is a convenient two hour drive from Bangkok. Moreover, The project is managed under the “Livable Community” concept, which is the strength of the Company, is offered to the residents in Pattaya. Since the project is well-received, the Company has decided to develop another project of the same brand in Cha-am, Petchaburi Province in 2015.

“Lumpini Seaview Jomtien” It is the brand in the mid-range for the working professionals with the age of not over 35 years old who would like to buy a vacation home by the beach. “Lumpini Seaview Jomtien,” is the first project developed in Pattaya, not far from “Lumpini ParkBeach Jomtien” which is the first resort condominium of the Company. It is designed as an affordable vacation home for the customers in the middle-income range who are the target customers of the Company. The residents of the project can enjoy panoramic view of the ocean. The project is managed under the “Livable Community” concept. Various services are provided for the convenience of the residents.

Pornsanti Co., Ltd. (PST) is the developer of horizontal real estate projects such as single house, townhouse and commercial building. The company is also responsible for the management of commercial property for rent i.e. commercial unit in residential condominium projects as well as shops in community malls. It supports the total solution service policy which aims to provide convenience in daily life of the residents. Apart from adding value to the projects, properties for rent also create recurring income for the Company.

Service Business

It is the policy of the Company to provide after-sale service to the customers in all projects. Four subsidiary companies are established to provide services related to property development as follows:

1. Lumpini Property Management Co., Ltd. (LPP) provides after-sale services to the customers for both condominiums and residential homes developed by LPN and provides management service to external projects as follows:

1.1 Community management

focuses on the value of service delivered after the project is handed over to the customers via “Livable Community” strategy which is developed into “Livable Community For All” strategy. It is to uphold the reputation and values of the projects developed by the Company. Professional community management team and condominium juristic person committee will manage the property, budget, quality of life, environment and safety of the residents in the project under F-B-L-E-S+P strategy. In 2017, the company will also provide community management service to external communities as well.

1.2 Management of residential condominiums, offices and commercial buildings

is responsible for management of common assets and common areas for the sake of building efficiency. It does not only make the building suitable for its use but also take care of operational efficiency under an adequate and suitable environment. Other services include providing management service for rental asset management system, setting up and operating condominium management system and managing office buildings, commercial buildings, superstores or other business buildings as required by clients.

In addition to providing building management services and building supervision to ensure the suitability of the building for its uses, the company supervises the operational efficiency under a suitable and worthwhile environment starting from planning, controlling, evaluating, managing database and auditing by personnel and teams who have high experiences in all fields.

1.3 Brokerage services

focuses on managing residential condominium units that the buyers (investors) wish to rent out or sell. The renters are also carefully selected to ensure the quality of life and safety of all the residents in the community.

1.4 Engineering Service

is responsible for providing comprehensive condominium engineering services according to customers’ needs. The operation includes supervision of the maintenance and repair of condominiums, such as electrical system, sanitation system, fire prevention system, air-conditioning system, building painting work, etc. Work plan and cost control plan are done by our expert and experienced personnel for the highest benefits such as repairing the interior of condominium units, designing and renovating wastewater treatment system and improving M&E system.

2. Lumpini Project Management Service Co., Ltd. (LPS) provides project management service to the Company and subsidiary companies. The company is supported by more than 20 companies in LPN Team. In 2017, the business base is expanded to include provision of service to external organizations. The emphasis is put on project management in order to deliver product values to customers as well as quality management, costs control and management, speed of completion, environmental responsibility and safety of construction workers and related parties under “Q-C-S-E-S+P” strategy. In 2019 the company has achieved ISO 9001:2015 Quality Management System Certification and ISO 14001:2015 Environmental Management System Certification.

3. LPC Social Enterprise Co., Ltd. (LPC) or originally called Lumpini Property Service and Care Co., Ltd. provides full services in community including cleaning. In 2017, the company will not only provide services to the projects developed by the Company but also to external parties. The employees are not only underprivileged women but also persons with disabilities and elderly people. In 2018 the company has become a social enterprise as certified by the Department of Social Development and Welfare, Ministry of Social Development and Human Security. Together with LPP, in 2019 the company has achieved ISO 9001:2015 Quality Management System Certification.

4. Lumpini Wisdom and Solution Co., Ltd. (LWS) is responsible for providing product research and development services to the Company and affiliated companies. The company also provides consultation and research services on green operation, sustainable development and Building Information Modeling (BIM) to the Company and other domestic and international organizations outside LPN Group.

The achievement of ISO 9001:2015 Quality Management System Certification of the three affiliated companies namely LPP, LPC and LPS has raised the standard of service business, increased competitive potential and built customer confidence in brand. Moreover, it can reduce cost in the long run and reduce work procedure and errors, resulting in decreasing complaints, maintaining of service standard and positive customer perception.