Chewathai, Condoman team up
MAI-listed developer Chewathai Plc (CHEWA) will tap the high-priced townhouse segment through a joint venture with an individual investor and condo blogger, Condoman, with plans to launch 15 units on Sukhumvit Soi 62/1 priced from 10 million baht.
A source close to the deal said the first project with no more than 15 units will be under the new townhome concept, designed by architecture firm Atom Design Co.
“The location will be 600 metres from Bang Chak BTS Station where townhomes are scarce,” the source said. “Rental rates at some condo units nearby are 300-450 baht per square metre.”
Chewathai reported to the Stock Exchange of Thailand last Friday that it has set up a joint venture firm, Chewa Heart Co, with registered capital of 10 million baht, with Chewathai holding 70% and Kajit Luanpitpong holding the rest.
Mr Kajit is an engineer-turned individual investor and a condo blogger, also known as Condoman.
“[Mr Kajit] wants to develop a townhome project as it is a quick way to generate money, but his funds are insufficient,” the source said.
After talks with many developers, he ended up with Chewathai as he felt it was easy to deal with, the source said. Chewathai also needs property experts to work with, while one of Mr Kajit’s friends is acquainted with Boon Choon Kiat, managing director of Chewathai.
Mr Kajit will seek land plots for townhouse development and conduct a feasibility study before pitching ideas to Chewathai.
“The contract period of the deal is three years and the joint venture firm will only develop townhouses, as Mr Kajit will set up another joint venture to develop condos,” the source said.
Chewathai this year plans to launch five new projects worth a combined 8.55 billion baht, compromising four sites worth 4.65 billion in Bangkok. Another development will be a condo project in Phuket worth 3.9 billion baht through a joint venture.
Chewathai reported a net loss of 31 million baht on revenue of 108 million in the first quarter, down from a net profit of 58 million and revenue of 541 million in the same period last year.
CHEWA shares closed yesterday on the Market for Alternative Investment at 1.33 baht, down one satang, in trade worth 2.3 million baht.