Nomura mulls non-residential projects
Apart from four condominium projects, Japan’s Nomura Real Estate Development Co is also aiming to invest in non-residential projects in Thailand in a joint venture with Origin Property Plc (ORI).
The Japanese property firm has earmarked a sum of 10 billion (3.05 billion baht), its biggest overseas investment ever, for its condo joint ventures with SETlisted Origin.
Nomura chairman Eiji Kutsukake said Thailand, despite the 1997 financial crisis and great floods of 2011, has shown stronger growth than other countries in Southeast Asia, while Bangkok property has experienced a rise in demand.
“Thailand, especially for Bangkok, has high potential for property investment,” he said yesterday. “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.”
After seeing a depopulation trend in Japan, Nomura in 2015 set a medium-term business plan for overseas investments, especially in Asia. It set side a budget of
300 billion for the overseas property market through 2025, hoping for 18-20% gross profit over the investment.
Of this budget, around 10% has been spent to date in residential developments in four cities with Ho Chi Minh City being the first destination, followed by Shenyang in China, Manila, where the firm also invested in retail, and Bangkok.
The l argest i nvestment will be i n Bangkok in four condo projects worth a combined 8.6 billion baht in which it will co-invest with Origin. Three of them will be launched this year in On Nut, Ratchayothin and Ramkhamhaeng areas, offering a total of 1,620 units.
Peerapong Jaroon-ek, chief executive officer of Origin, said the joint venture with Nomura also includes co-development as the Thai firm will gain the Japanese residential development know-how from Nomura.
Nomura’s Luxmore concept will be applied to some joint ventures but only offered as an option for buyers.
“If the Japanese know-how receives a good feedback from buyers, it will be become a development standard for all
Origin’s future projects,” Mr Peerapong said.
The three joint venture condo projects worth a combined 6.1 billion baht will be launched on Sept 16 and Origin aims to have at least 50% sold soon after the launch.
ORI shares closed yesterday on the SET at 13.70 baht, unchanged, in trade worth 19.3 million baht.