Thailand's leading real estate agent

Huge Jump in Foreign Partners in Thai Realty

By on Mar 29, 2018 in Residential

More foreign real estate companies and investors are forming joint venture projects with Thai developers, said Aliwassa Pathnadabutr, managing director of CBRE Thailand.

“The number of such projects in Bangkok has grown exponentially from 4 in 2013 to 52 in 2017,” she said.

Part of the reason for forming the ventures was to offset funding hurdles.

For more than a year, Thai banks had adopted a more conservative lending policy to address growing non-performing loan cases, many in the real estate sector.

Most joint ventures to date have been with Japanese investors such as Mitsubishi Fudosan.

Ananda Development possesses the biggest share of such joint ventures.

“When we formed our partnership with Mitsui Fudosan in 2013, we had just one project,” said Ananda CEO Chanond Ruangkritya.

“Today we have 27 sites worth Bt114 billion.”

Ananda has also acquired land for 25 new projects to be launched now until 2019.

Mitsui Fudosan will take a stake in CBD sites and they prefer less risky downtown locations.

Ramon Land CEO Adrian Lee said foreign participation in Thailand’s real rstate sector should grow as investors share an upbeat view for the country’s future and economic stability.

“Compared to Hong Kong and Singapore, Bangkok is perceived to hold better value and growth potential,” he said. Country Group Development also secured backers from China for its massive 36-rai Chao Phraya River site.

Its Four Seasons Private Residences has more than half its sales coming from Chinese buyers.

The project has funding worth US375 million from Ping An Bank of China.

Source: The Nation – 29 March 2018

No comment





 

emailSubscribe Via Email

Privacy guaranteed. We will not share your information.

Follow Me on Twitter

Follow Me on Facebook

Subscribe via RSS Feed

Copyright © 2020 CBRE (Thailand) Co., Ltd. All Rights Reserved.