Thailand’s property firms are starting to look abroad for opportunities as they look to diversify their portfolios and increase revenues over the next few years, The Nation reported. Seven of Thailand’s leading property firms already have international investments and will continue to look for additional opportunities outside the country.
“We have been expanding our investment abroad since 2010 as part of our aim to boost annual revenue to THB100 billion by 2020. This is also a way to learn how to do business overseas to balance our portfolio,” Thongma Vijitpongpun, president and chief executive of Pruksa Real Estate told the newspaper.
Pruksa started investing internationally with projects in India, Vietnam and Maldives; however, it has not always been smooth sailing for the company. According to The Nation, the developer pulled out of Maldives and has also suspended its investment in Vietnam. Pruska is still doing business in India.
“This is a good learning experience on how to do business overseas – what we can do and when we have to withdraw from the market. However, if we see a business opportunity, we will still expand our investment overseas, especially in ASEAN countries,” Thongma noted.
Several other leading Thai developers including Land & Houses, Sansiri, Supalai, TCC Land Co, CP Land and Singha Estate also have investments abroad in the residential, hospitality, and office segments, The Nation added. Singha Estate took over a hotel in Britain in a deal worth THB2.25 billion while Sansiri has purchased and restored houses in London under THB1 billion for Thai buyers looking for a house abroad and Fragrant Property has expanded into Myanmar.
Land & Houses was one of the first Thai developers to invest in the US market but understand the dangers that come with investing in projects outside of Thailand. “When we invest overseas, the investment has to generate a higher return than a similar venture in Thailand, because we have to consider the business risk,” Land & Houses managing director Adisorn Thananun-Narapool stated.
