SINGAPORE: Keppel Land Ltd, one of Singapore's largest property firms, is reinvesting in the Thai property market, spending some 2.8 billion baht for two condominium projects under joint ventures with Thai firm KPN Land Co this year.
Sam Moon Thong, Keppel's president for regional investment, said the company is ready to return to Thailand this year after selling all shares in the former Keppel Thai Properties Plc (KTP) to King Wai Group, a large Chinese developer, two years ago.
"Our investment in Thailand will be on a different platform as we search for a strategic partner to co-develop residential projects in the luxury segment," he said. "We are also looking for other opportunities to invest like commercial developments in Bangkok."
Two years ago Keppel gained 300 million baht from the sale of a 45.5% stake in KTP. It will use this amount with additional investment to develop two luxury condominium projects on Sukhumvit Road through a joint venture with KPN Land.
The two companies set up a joint venture firm last year, KPN-Keppel Alliance Co, with registered capital of 50 million baht where Keppel holds 49% and KPN holds 51%.
The two projects that Keppel will invest around 2.8 billion baht in will be located on Sukhumvit Soi 19 and Soi 28, with a combined sales value of 7 billion baht.
The combined land cost for both sites was 2.2 billion baht.
The Sukhumvit Soi 19 project will be located on one rai, offering a 24-storey tower with 140 units worth 2.5 billion baht. Unit prices will start from 10 million baht or 300,000 baht per square metre.
The other project will be located on a two-rai plot on Sukhumvit Soi 28. It will be developed for a 30-storey building with a total of 265 units worth 4.5 billion baht. Price per unit and per sq m will be similar to the first project.
"As the Sukhumvit Soi 28 project is facing issues with neighbouring communities, we are revising the project design and postponing launch plans to the fourth quarter this year or early next year from the second quarter," said Rawee Tahtniyom, chief executive of KPN Land.
The company moved the launch of the Sukhumvit Soi 19 site, which was earlier planned for the fourth quarter, to the second quarter as the company waits for approval on the environmental impact assessment report for the Sukhumvit Soi 28 project.
On Feb 20, 2018, residents who lived on Sukhumvit sois 28 and 30 gathered in front of the Singaporean Embassy to submit a letter to there, objecting to the 30-storey condo.
"We have learned what the residents are concerned about. We will do what we can to help them. We will comply with regulations," said Mr Rawee.
By the end of 2018, KPN Land expects to realise 2.5 billion baht in revenue from the transfer of units at Sukhumvit 39 and remaining ones at The Diplomat Sathorn, a high-priced condo on Sathorn Road.
