The story of Thai developers forming joint ventures with Japanese companies continues with news that Origin Property Plc has reached an agreement with Nomura Real Estate Development Co. The deal will initially start with 4 condo projects worth THB 8.6 billion combined, according to local media reports.
“The Japanese partner will help drive our performance to be one of the top 3 developers in revenue and presales in the next five years. By 2022 we will have over THB30 billion in revenue,” says Origin Chief Executive Peerapong Jaroon-ek to The Nation.
The deal sees Nomura Real Estate Development take a 49 per cent share in 4 of Origin’s subsidiaries: Origin Sphere Co, Origin Vertical Co, Origin Ramkhamhaeng Co, and Origin Prime 2 Co. The jointly-owned subsidiaries will develop 4 condo projects as part of the agreement.
Origin Property Plc has reached an agreement with Nomura Real Estate Development Co.
A total of 3 launches will take place this year. Knightsbridge Prime Ratchayothin, Knightsbridge Ramkhamhaeng, and Knightsbridge Prime On Nut are all scheduled to be unveiled in the coming months. In addition to the new condo projects, the partnership allows Origin to increase the number of foreign buyers it has from 10-15 per cent to 20 per cent as Nomura will bring the developments to roadshows in Japan and China.
Origin also announced that it has increased the number of new projects it plans to launch in 2017 to 12, up from the 9 originally planned. The company is looking to launch 8 new projects in the 2nd half with 4 of these scheduled to take place in the 3rd quarter.
“The property market may not return to normal but we are confident our products can compete with rivals and tap into the right demand,” says Peerapong.
The developer is also considering diversify its holdings and is exploring opportunities in non-residential property businesses. It is investigating a mid-sized office building, warehouse, property-related service, property brokerage, and media as it looks to create new streams of revenue.
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