SET-listed developer Pruksa Real Estate Plc (PS) is set to expand into the healthcare sphere. It plans to develop a hospital with at least 100 beds in the fourth quarter on Phahon Yothin Road in the Saphan Khwai area.

A source in the healthcare industry said Pruksa last month had recruited more than 10 retired doctors from Ramathibodi Hospital as it prepared to develop a facility that would probably be in the same segment as Phyathai Hospital.

"These doctors will manage and run the hospital, which is a new business for Pruksa to dive into," the source said.

With at least 100 beds, the hospital would be located on a four-to five-rai site on Phahon Yothin Road in the Saphan Khwai area, near the Government Savings Bank Headquarters. The location is 1.3 kilometres from Pruksa's new head office tower, Pearl Bangkok, in the Ari area.

"The hospital is in the designing process and an environmental impact assessment is set to be submitted within the third quarter. Construction will be able to start in the fourth quarter with an investment budget of around 1 billion baht, excluding the land cost," the source said.

The source added the key to getting into the hospital business was having medical teams to manage everything, including special practitioners and general practitioners from experienced teams. Medical professional such as nurses, meanwhile, could be drawn from nursing schools across Thailand.

Co-chief executive Lersuk Chuladesa said the company was studying many recurring-income businesses, including health care, as it aimed for this model to generate 20% of its total revenue in the next five years. The company currently earns no revenue from recurring-income businesses.

"We target revenue of 100 billion baht by 2020," Mr Lersuk said. "Returns from recurring-income business should be higher than what we get from our residential development business."

Apart from delving into the recurring-income business, he said organisational restructuring was another mission for this year.

Pruksa said earlier in February it would establish a holding company, Pruksa Holding Plc, by November that will buy all the shares of Pruksa Real Estate through share swaps. It will then delist the company from the Stock Exchange of Thailand, whereby Pruksa Holding will later be listed on the SET.

The restructuring is aimed at facilitating investment in other businesses.

The company set a new revenue target at 53 billion baht, compared with 50.67 billion baht it posted last year, said Mr Lersuk.

Pruksa on Thursday reported a net profit of 1.26 billion baht on revenue of 10.28 billion baht in the first quarter, up 42.1% and 23.8% from the same period last year respectively.

Main contributor was from condominium transfer which rose tripled to 3.24 billion baht from one billion baht.

As of the end of March 2015, it had sales backlog of 25.46 billion baht, of which 14.38 billion baht would be realised this year. It had 171 ongoing projects on hands with remaining sales value of 78.7 billion baht including 140 single house and townhouse projects worth 61.31 billion baht and 31 condo projects worth 17.37 billion baht.

On May 1, 2016, Pruksa promoted Piya Prayong, managing director for townhouse, to be president of value business which focuses on middle-to lower-priced segment with townhouse priced lower than seven million baht, single house priced lower than 10 million baht and condo priced lower than five million baht. 

The company assigned Prasert Taedullayasatit, managing director for condo, to be president of premium business which focuses on middle-to higher-priced housing segment with unit priced higher than the value business.

Currently, the value business accounted for 95% of the total port of 78.7 billion baht while the premium business represented only 5%. Pruksa aimed to boost the premium business to 20% in the next five years when the value business would reduce to 80%, said Mr Piya.