TOKYO: SET-listed developer Sansiri Plc and Tokyu Corporation, a major private Japanese railway firm, plan to develop a fourth joint venture condominium in Thailand worth 3 billion baht in Sri Racha.
Uthai Uthaisangsuk, chief operating officer of Sansiri, said the company is in talks with its Japanese partner about the development plan for a low-rise condominium project in Sri Racha, Chon Buri, the most popular location for Japanese investors outside of Bangkok.
"Tokyu Corp can help us expand our market to Japanese buyers. Its name brand can build confidence among not only Japanese but also other foreigners," he said.
"Our sales from the Japanese should grow to 10% of total foreign sales, up from 3-5%."
Sansiri has recorded a total of 24 billion baht in residential sales from foreign buyers since 2014. The Chinese account for 40%, followed by Hong Kongers at 30% and Singaporeans and Taiwanese at 10% each.
Mr Uthai said Tokyu Corp is considering increasing its share in the joint venture with Sansiri from 30% to 49% for future projects.
"Slow but sure is the Japanese motto," he said. "Tokyu Corp wanted to try one project in the first year. When the project recorded sales exceeding 50% in the first two weeks of the launch, its confidence grew."
Sansiri and Tokyu Corp launched the first project, Taka Haus, last year in the Ekamai area worth 2 billion baht. That project is 95% sold. The second and third projects worth a combined 5 billion baht are scheduled to launch in August.
Tokyu Corp Group's share comprises Tokyu owning 29% and Saha Tokyu Co, a Tokyu subsidiary in Thailand, owning 1%.
The second project is a 38-storey condominium located in the Ekamai area worth 3.5 billion baht, and the third is two eight-storey condominium towers worth 1.5 billion on Sukhumvit Soi 50.
Toshiyuki Hoshino, director and senior managing executive officer of Tokyu Corp, said the company is exploring residential development opportunities in eastern provinces where the Thai government is initiating the Eastern Economic Corridor (EEC).
"Both Sansiri and Saha Group are studying investment opportunities with us for residential development in the EEC," he said.
Mr Hoshino said Tokyu Corp is interested in the high-speed train development linking three airports in Bangkok and Chon Buri through a public-private partnership, but the project is too massive for any single firm to tackle.
"We are waiting for more details on the project so that we can decide whether to join it," he said.
But despite being a railway firm, Mr Hoshino said it has no plans to invest in railway development overseas.
"Railway development abroad is quite difficult and has a lot of obstacles," he said. "It comes down to the local governments as [these developments] are a public service and fares must be affordable."
Mr Hoshino said Tokyu Corp is also interested in a development project for the Makkasan plot owned by the State Railway of Thailand, but is awaiting more details from Sansiri.
Sansiri is Tokyu Corp's fourth partner in Thailand after working on two projects -- Paradise Park Shopping Center andwith MBK Plc in 2015 -- and a serviced apartment project in Sri Racha, HarmoniQ Residence Sriracha, with Saha Group in 2014.
Tokyu Corp first entered Thailand in 1981 when it joined SET-listed construction firm Ch Karnchang Plc to set up a joint venture firm, Ch Karnchang-Tokyu Construction Co, to build highways and factories.
Tokyu Corp plans to invest US$100 million (3.2 billion baht) per year in Thailand and Vietnam.
SIRI shares closed yesterday on the Stock Exchange of Thailand at 1.69 baht, a decrease of one satang, in trade worth 113 million baht.
