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Sumitomo Targets High-End Segment With Joint Deals

By on Jan 18, 2019 in Featured, Property News
Sumitomo Targets High-End Segment With Joint Deals

An artist’s depiction of Hyde Heritage Thonglor, located on a 2.2-rai site on Sukhumvit Soi 59
which was launched yesterday.

Japanese timber firm and home builder Sumitomo Forestry Co plans to spend 7 billion baht this year on two joint venture condo projects worth a combined 16 billion baht with SET-listed developer Property Perfect Plc and its subsidiary.

Shigeru Sasabe, Sumitomo’s executive vice-president and executive director, said the company is confident in the growth of the economy and property market, and not worried about the new lending curbs.

“Our [joint venture] projects will be in the high-end segment, where the lower loan-to-value ratio will not affect buyers as loans are not a concern for this group,” he said.

The two joint venture condo projects comprise Hyde Heritage Thonglor, worth 6 billion baht on Sukhumvit Soi 59, and Hyde Riverside worth 10 billion baht on Charoen Nakhon Road on the banks of the Chao Phraya River.

Both will be joint ventures between Property Perfect, SET-listed firm Grande Asset Hotels and Property Plc (a Property Perfect subsidiary), and Sumitomo Forestry, with the three holding 11%, 40% and 49%, respectively.

Launched yesterday, Hyde Heritage Thonglor is located on a 2.2-rai plot with a 45-storey building and a total of 311 units sized from 40 square metres, and priced 260,000 baht per sq m on average.

Hyde Riverside is scheduled to be launched by the end of the year, with an average price of 200,000 baht per sq m.

Mr. Sasabe said Sumitomo also plans to have a joint venture with Property Perfect to develop a single detached house project in the mid- to high-priced segment in Greater Bangkok.

Chainid Adhayanaskul, Property Perfect’s chief executive, said the company will sign an agreement with Sumitomo in the second quarter for the single detached house venture, with the first project, worth 6 billion baht, expected to be launched next year.

“This year new condo supply will slow as many developers are not confident about the effect of the central bank’s new lending curbs that will take effect on April 1, 2019,” he said.

PF shares closed yesterday on the Stock Exchange of Thailand at 0.72 baht, up one satang, in trade worth 1.95 million baht, while GRAND shares yesterday closed unchanged at 0.84 baht, in trade worth 176,380 baht.

Source: Bangkok Post – 18 January 2019

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