News: Nomad to strengthen its serviced office segment
On the back of new office space supply in the region, Nomad Group Bhd wants to earn equal profits from its serviced offices, as compared to serviced residences and hotel segment by next year.
At present, 60 percent of the group's revenue is contributed by its serviced residences and hotel while 40 percent is accounted for its serviced offices.
Roy Winston George, CEO of Nomad Group Bhd, noted the group has secured a total of 56,544 sq ft of office space in Bangkok, Jakarta and Kuala Lumpur that will operate later this year, mounting its regional total gross floor area (GFA) to 279,744 sq ft by year-end.
"There's a gestation period before the office matures, hence we expect the new office space to contribute positively to our revenue in 2013," he added.
"Both segments are equally important to us, as we position ourselves as an integrated service provider in the ready-to-use office space and hospitality sector. We cater to business travellers who need accommodation and office space."
Despite the oversupply of office space following the entry of office providers in the city, the group expects to maintain its serviced offices occupancy rate of 80 percent, primarily because there is limited supply of quality office space.
"There'll always be demand for temporary offices, and serviced offices will be a natural choice, as there is no long-term investment or leasing," added George.
Meanwhile, revenue contribution from Nomad's overseas operations is expected to rise between 30 percent and 40 percent in two to three years' time, from 10 percent to 15 percent currently.
George also noted that the group is eager to discover investment opportunities through strategic purchase for both serviced residences and hotels and serviced offices in Indochina countries like Laos, Cambodia, Myanmar as well as Vietnam.
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