Supalai is no stranger to overseas investment with projects in Australia and other countries. It announced to local media that it is now planning to expand its presence in Manila focusing on the low-rise residential sector.
Chief executive Prateep Tangmatitham told the Bangkok Post that the company will sell Petron Megaplaza, a 45-story office tower in Makati City, to a Hong Kong-based property fund some time during the next few months. The building is estimated to be worth THB1.17 billion.
Funds from the sale are expected to be used to help it expand into the low-rise residential segment. Supalai revealed that it is in talks with a local developer to form a joint venture.
“We are interested in low-rise residential development as the country’s economy is expanding with a large population of around 100 million and strong demand, yet limited supply in the middle- and lower-end segment,” Prateep told the newspaper.
The developer is also moving ahead with its investment in the housing sector down under. This year it has spent THB1.39 billion to develop three new projects in Australia. This is more than double what the company paid to develop three other projects during the past two years.
“Australia is a large country with rich resources and stable politics and a strong economy. The regulations are clear and transparent while information about the housing market is easy to find,” Prateep stated.
Supalai has teamed with local homebuilders including Innovation Construction and Development for a project in Geelong and Peet for Brisbane and Melbourne developments. Local developers have been searching for foreign partners giving Supalai a chance to expand its foreign interests.
“Australian financial institutions have tightened project finance rules, so local developers need to seek foreign partners,” Prateep added. “It’s a good chance for us to invest in Australia because our financial costs are only three percent while for local developers it is seven percent.”
Image: Makati City in the Philippines.
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