BANGKOK, NNA - Japanese railway operator and real estate developer Tokyu Corp. has teamed up with a Thai real estate company to develop condominium complexes in central Bangkok to cater to growing demand among local and foreign commuters.
Tokyu will build two condo towers jointly with Sansiri Public Co. for 2 billion baht ($60 million) in the Sukhumvit-Ekkamai neighborhood for completion in 2019.
The developers will begin selling the condos next month both in Japan and Thailand, said Uthai Uthaisangsuk, Sansiri's chief operating officer.
The two companies established their first joint venture, Siri TK One Co., on Monday to manage the condo project, with 70 percent of its registered capital of 10 million baht held by Sansiri, 29 percent by Tokyu and the rest by Tokyu's local arm Saha Tokyu Corp.
The seven- and eight-story buildings comprise a total of 269 units ranging in size from 30 to 70 square meters.
Prices will be announced at sales events on Sept. 3 in Japan and on Sept. 16 in Thailand, Uthai said.
"Housing demand in Bangkok will remain steady as the population in the capital will continue to grow on the back of stable economic growth," said Toshiyuki Hoshino, Tokyu's senior managing executive officer.
Hoshino pointed out that a growing number of locals in Bangkok commute to work or school by public transportation such as subways like in Japan.
Tokyu can provide its expertise it has gained through housing projects in suburban areas and city redevelopment at home, he added.
The Tokyo-based firm aims to capitalize on the appetite of Japanese investors through residential development for middle- and high-income classes as they show keen interest in housing in Bangkok in diversifying their investment portfolios, Hoshino said.
"Apart from condominiums, we are also interested in mutually developing a community in the future," Uthai said, adding that partnering with Tokyu helps Sansiri enhance reliability and reputation among Japanese expats, and he believes this will contribute to pushing up the ratio of Japanese clientele from single- to double-digit percentages next year.
According to Uthai, the two companies have also agreed on a long-term partnership to launch more joint projects in the future, with Tokyu sharing its huge Japanese consumer database and expertise with Sansiri for residential development in Thailand. (NNA/Kyodo)