SET-listed developer Supalai Plc (SPALI) plans to take over listed developer M.K. Real Estate Development Plc, with the latter's properties and businesses that canvas a warehouse, a golf course and a land bank hoped to expand Supalai's business.

Prateep Tangmatitham, chief executive of Supalai, said M.K.'s businesses differ from Supalai's, with various recurring-income properties, while Supalai's main business is residential development.

"We are interested in M.K. as it offers a chance to expand to new businesses," he said in a report Wednesday. "It will be a win-win collaboration to increase the growth potential of both companies."

M.K. has an 18-hole golf course, Flora Ville Golf & Country Club, or formerly Chuan Chuen Golf Club on a 400-rai plot in Pathum Thani. Last year it invested 160 million baht to renovate the 24-year-old golf course and aims to have 40% income growth from it.

M.K. also owns Bangkok Free Trade Zone, a warehouse and factory for rent with a total lettable area of 115,000 square metres in Bang Phli, Samut Prakan. It plans to develop an additional 38,000 sq m this year.

M.K. rents apartments at Park Court Sukhumvit 77, on Sukhumvit Soi 77, and via a property management subsidiary, Yours Property Management Co.

M.K.'s land bank plots are also located in various areas. Many of them are in good locations and have low costs when compared with land prices. They have the potential to be developed in the future, said Mr Prateep.

"Many plots are in locations that are new for Supalai and target customers are different from our customer base," he said. "This will be a good chance for us to expand into."

Supalai Wednesday submitted an application for a voluntary tender offer to M.K. at a price of 4.10 baht per share after its board of director approved on July 10, 2018, to do the voluntary tender offer through Supalai Property Management Cos, one of its subsidiaries.

Supalai has a strong financial status with a growth in presales, revenue and good cash flow. Its debt-to-equity ratio is low after raising funds last year. The cost of funds is also only lower than 3%.

"We can help reduce development and financial costs for M.K., which can help boost consolidated profit. This investment will be the same as our investment in residential development in Australia, where we mainly join in policy management," said Mr Prateep.

Mr Prateep, 70, holds an 11.29% stake in M.K. He is a younger brother of Chuan Tangmatitham, formerly major shareholder and founder of M.K., which was established in 1973.

Mr Chuan and his family sold their 20.64% stake at price of 6.75 baht per share from a total 25.75% to Castle Peak Developments Ltd and CPD Holding Ltd, which was worth a combined 1.2 billion baht in June 2015.

Earlier this year, M.K. announced the launch of seven new projects worth a combined 4.72 billion baht in 2018. They will comprise five single detached house projects and two townhouse projects in existing locations, including western and northern Bangkok and Pathum Thani.

M.K. expects to have 3.5 billion baht in presales by the end of 2018, up from 3 billion baht in 2017.

SPALI shares closed Wednesday on the SET at 24.50 baht, down one baht, in trade worth 442 million baht, while MK shares closed Wednesday at 4.08 baht, up 78 satang, in trade worth 482 million baht.