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Japanese Developers To Invest in Thailand via JV Companies

Posted by admin on May 28, 2014

Property developers from Japan are expanding their activities in the Kingdom by setting

up Joint Ventures with major leading Thai developers towards projects worth more than

THB20 billion.

In fact, this could be mainly explained by the high demand from Japanese investors to

buy property in Bangkok for both investment and residential purposes before the Asean

Economic Community takes place in 2015.

Here are some examples of major JV set up in Thailand:

– Mitsui Fudosan, leading property developer in Japan, established Ananda MF Asia

with Ananda Development last year with a registered capital of about THB900

million. Both firms hold 49% of the shares while the remaining 2% are held by

minor parties. The JV is currently developing Ideo Q Rama 4, a Bangkok condo

project near MRT Sam Yan and worth THB6.5 billion.

– The Japenese firm is trying to set up a JV with Singha Corp as well towards

developing a complex on Rama 4.

– AP (Thailand) is also partnering with Mitsubishi Estate Group, Japan’s largest

developer by assets value, to build three Bangkok condos up in the country worth

THB7.5 million.

As previously mentioned, Japanese investors are getting even keener on Bangkok real

estate and a lot of them are willing to purchase a property as a second home or as a

retirement residence.

According to BTS Property Group search records, Japanese are both looking to buy and

to rent in Bangkok. They are mostly focusing on prime areas from Sukhumvit 22 (Phrom

Phong BTS) to Sukhumvit 63 (Ekkamai BTS). Most of them are buying/renting units of

35 to 50sqm with a budget of 4 to 7MB that can be rented out up to 40,000THB/month.

In fact, and according to Property agency CB Richard Ellis (Thailand)’s managing

director, Aliwasa Pattanthabutr: “Since the devastating earthquake and tsunami that hit

Japan in 2011, Japanese buyers had become interested in expanding their investment in

Asean, and especially in the Bangkok condo and Thai resort-home markets.”

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