BANGKOK, NNA – Japanese trading house Itochu Corp. will jointly develop a premium condominium tower in central Bangkok with Thai conglomerate Charoen Phkphand Group Co., targeting affluent consumers.
In a 33-billion-yen ($297 million) project, Itochu will build a 39-story tower comprising 553 units with Magnolia Quality Development Corp., a wholly owned subsidiary of the Thai group, Itochu said Monday.
Itochu and Itochu Property Development Ltd. will invest some 2.5 billion yen in the project, an Itochu spokesperson in Tokyo told NNA, adding that construction will begin in May and end in 2021.
The standard unit is a 35-square-meter one-bedroom studio priced at 10.4 million baht ($332,200), similar to prices in central Tokyo, Kenji Katsumoto, another Itochu spokesman, said.
The relatively high price is due to the prime location of the building, which has a river view and easy access to public transportation and a large park, Katsumoto said. Sales start this month.
Itochu formed a capital alliance with the Thai group in 2014, buying a 25 percent stake in C.P. Pokphand Co., a Hong Kong-based holding company that runs animal feed manufacturing in China and Vietnam.
Many Japanese real-estate and railway companies have entered the booming Thai property market in recent years amid rising housing demand in the capital from middle- to high-income households and foreigners.
But tighter mortgage regulations and the increase in interest rates last December pose challenges to condominium developers in 2019, CBRE Thailand Co., a property consulting firm, warned in a report released this month.