BANGKOK, NNA - Japanese property developer Shinwa Real Estate Co. is moving into Thailand in a bid to extend its reach in Southeast Asia by establishing its first overseas joint venture.
Osaka-based Shinwa recently set up a joint venture called W-Shinwa Co. with Woraluk Property Public Co. to develop Japanese-standard property projects in the Thai market. Capitalized at 275 million baht ($7.74 million), the joint venture is owned 51 percent by Shinwa and its subsidiary and the remaining 49 percent by the Thai firm.
"This is the first overseas joint venture for Shinwa Group and we see business opportunities with strong confidence in the Thai market," W-Shinwa co-chief executive officer Tomoyasu Yamabe said in a press release.
Yamabe expressed hope that the new investment in strategically important Thailand will help Shinwa expand its operations in other Southeast Asian countries in the future.
Wichai Chula-Olarnkun, Thai co-chief executive officer, told NNA in an interview that the joint venture will plan to initially develop a Japanese-style residential project in Bangkok's central business district by utilizing Shinwa's constructional and design innovation under the Runesu brand.
Its first project dubbed Runesu Thonglor 5 is an eight-story condominium in the capital's Thonglor area, replete with a Japanese garden, spas, pool and other amenities. It will have 156 units measuring 29 to 65 square meters with price tags starting at 4.9 million baht ($137,200).
Construction will begin in the second quarter of next year and the condominium is scheduled for completion in 2018. Although the new condo will mainly cater to Japanese expatriates in Thailand and others who like Japanese-style living, W-Shinwa predicts that 60 percent of the buyers will be Thai and foreign investors purchasing for investment and rental purposes.
"Japanese residents are considered good tenants and Thonglor is currently the most popular neighborhood in Bangkok" among Japanese expats, Wichai said, adding Runesu Thonglor 5 will be the first authentic Japanese condominium in Thailand targeting a 'niche market'." (NNA/Kyodo)