Nomura Real Estate Development Co is considering a number of non-residential real estate projects in Thailand as part of its joint venture deal with Origin Property Plc, reports local media. The partners already have 3 condo projects in the pipeline, but could soon team up on more diverse developments.
“Thailand, especially for Bangkok, has high potential for property investment. Our joint venture with Origin has opened opportunities for us to invest in other property categories like office buildings, serviced apartments, and retail and logistics centres,” says Nomura Chairman Eiji Kutsukake to the Bangkok Post.
The Japanese company believes Thailand is poised for higher growth than other countries in the region with the Bangkok property market currently seeing strong demand. That is one of the reasons it was willing to invest more than THB3 billion in condo joint venture projects with Origin Development. It was Nomura’s largest foreign investment ever made.
So far Origin and Nomura have worked together on 4 condo projects in Bangkok worth THB8.6 billion combined. The partners are going to launch 3 more condos with 1,620 units this year. These will be in the On Nut, Ratchayothin, and Ramkhamhaeng areas of Bangkok. The companies believe 50 per cent of units in these developments will be sold by the end of the year.
As part of the deal, the 2 companies will share knowledge with Origin being able to learn from Nomura. As part of this knowledge swap, the Japanese company’s Luxmore concept will be offered at all of the joint venture projects as a special add-on option. If it proves to be popular, Origin may utilise the concept moving forward.
“If the Japanese know-how receives a good feedback from buyers, it will be become a development standard for all Origin’s future projects,” says Origin Chief Executive Officer Peerapong Jaroon-ek.
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