Reflecting renewed foreign investor confidence in the Thai real estate market, a number of local-international joint ventures have been set up for the development of both residential and commercial properties.
A recent example that made the headlines is a venture between Charn Issara Development and investors from China and Hong Kong to develop a THB 3 billion mixed-used project in Phang-Nga province. Named the Baba Beach Club, the project will be comprised of detached houses, condominiums and a hotel; construction will commence next year. Charn Issara Development CEO Songkran Issara commented that the JV was part of its strategy of managing its portfolio to support its investment plan.
Another example is TMDC Construction, a JV between Thailand’s Major Development (holding 51% of the shares); Israeli construction firm, Danya Cebus (45%); and Hong Kong’s CRG Global Investment (4%). With THB 100 million of registered capital, Major Development managing director Suriya Poolvoralaks reported to the SET that the venture was part of an effort to increase its business advantage during a period of intense competition. It is also aimed at expanding its property development-related business in the future.
Japanese investors had earlier expanded their investment in the Thai real estate market through JVs. Mitsui Fudosan Group did so with Ananda Development, while Mitsubishi Estate Group followed the same path with AP (Thailand).
