China, Hong Kong, Israel, Singapore and Japan are the prevalent foreign investors in Thailand’s property market. They are expanding their investment via joint ventures with local companies.
Charn Issara Development has formed a joint venture with investors from China and Hong Kong to develop a Bt3-billion mixed-used project. Accordingly, Songkran Issara CEO Charn Issara Development the company's joint venture with investors from China and Hong Kong for its Bt3-billion mixed-used project in Phang-Nga was part of its strategy of managing its portfolio to support its investment plan.
Major Development has established a joint venture, TMDC Construction, with Bt100 millions of registered capital with an Israeli construction firm, Danya Cebus, and Hong Kong's CRG Global Investment. Major Development managing director Suriya Poolvoralaks reported recently to the SET that the company's venture with Israeli and Hong Kong firms was part of an effort to increase its business advantage during a period of intense competition.
Meanwhile, Nirvana Development is in negotiation period with two property funds from Japan and Singapore. Nirvana Development CEO Sornsak Somwattana said the company required more capital to expand its business during a highly competitive period, and negotiating with foreign property funds formed part of its effort to boost funding to compete with other property players.
Mitsui Fudosan Group joined with Ananda Development, while Mitsubishi Estate Group followed the same path with AP (Thailand).
According to Surachet Kongcheep, senior manager of Colliers International Thailand's research department, said investors from different countries are currently concerned in escalating their investment in Thailand's property market, because geographically the Kingdom is a gateway to ASEAN which will increase in significance when the ASEAN Economic Community comes into being next year.
Source: Somluck Srimalee