THG speeds up projects as tax kicks in
The enforcement of the land and buildings tax is putting pressure on Boon Vanasin, owner and chairman of Thonburi Healthcare Group (THG), to speed up development of property projects.
The tax, which nudges landlords to use their plots in a productive manner and improves tax collection, is scheduled to come into force in early 2020.
As a landlord, Dr Boon plans to use THG subsidiary Rajthanee House and Land Co to participate in the government’s One Million Houses and Baan Pracharath property schemes.
Dr Boon said the company has allocated 8 billion baht to develop both schemes in 2020. He has undeveloped plots of 8,000 rai nationwide.
“The purpose of the land and buildings tax is to accelerate new investment and land development,” he said. “The government’s two residential schemes hope to provide an opportunity for lowincome earners to own houses.”
He said both schemes are good projects to encourage young people to think of homebuying, but many housing units are unaffordable.
“My company can use undeveloped land plots to participate in the government’s scheme once it announces allowing a joint investment from private companies,” Dr Boon said.
Major shareholders of Rajthanee
House and Land are members of Dr Boon’s family.
He said the company has been selected by state-owned GH Bank to develop nine projects of the Baan Pracharath scheme, consisting of more than 4,000 housing units.
These are low-cost housing units priced below 1.5 million baht. Rajthanee House and Land plans to develop land in Khon Kaen, Uttaradit, Roi Et, Ratchaburi, Sakon Nakhon and Kalasin.
Dr Boon said 2-3 projects in this scheme will be completed in March.
“The company and GH Bank are providing developed houses for people in order to make their dreams come true as residential owners,” he said. “The company plans to develop roughly 50,000 units annually to serve buyers’ demand.”
For the One Million House scheme, Rajthanee House and Land is proceeding to work with international funds.
“I cannot give more details about the scheme, because it is in negotiation with potential investors,” Dr Boon said.
He is also interested in investing in the government’s flagship Eastern Economic Corridor (EEC) in a healthcare centre to serve people working and living in the corridor.
The government plans to develop many megaprojects such as smart cities, industrial parks and financial cities in the EEC host provinces of Chachoengsao, Chon Buri and Rayong.
“The smart city is also interesting, and I am looking to invest in many projects there because the scheme has many potential opportunities in the long run,” Dr Boon said. “The large population in the corridor will drive demand for medical services.”
He said the healthcare centre in the EEC is in talks with Chinese partners.
“The company has prepared some developed land for the healthcare centre in one of the three EEC provinces,” he said. “The conclusion of this project will be disclosed by 2020 for investment model, budget and location.”
THG is in negotiations to acquire two private hospitals in Chanthaburi and Ubon Ratchathani to expand the healthcare business and attract patients from neighbouring countries.
Dr Boon said the acquisition of the two hospitals will be settled this year after talks started with the owner of both hospitals four months ago.