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Property company Chewathai is confident of expanding its investment despite the immi¬nent recession in the global economy and Thailand's political turmoil. The company has set aside an investment budget of about Bt2 billion to launch four residential projects this year and next.

Chewathai is a joint venture between Thai property company Chartchewa - owned by the Panitchewa family - and Singaporebased construction company TEE Group and has registered capital of Bt100 million.

Chewathai is now developing its first condominium project, Chewathai Ratchaprarop, worth Bt1.2 billion. The project has recorded presales of up to 50 per cent of the project value.

The company will set up a 50:50 joint venture called Chewathai Hup Soon with United Motor Works (Siam), a subsidiary of Singapore company Hup Soon Group. The new firm will have registered capital of Bt168 million. The joint venture is developing an eightstorey condo¬minium worth Bt450 million - called Surawong by Chewathai Hup Soon - on Surawong Road. The project will be located on land acquired from United Motor Works (Siam).

The condominium will have just 52 units at a prices between Bt90,000 and Bt150,000 a square metre. Construction on the project will begin next year, Chewathai exec¬utive director Boon Choon Kiat said in an exclusive interview with The Nation on Tuesday.

Boon said the company is plan¬ning a roadshow for Surawong by Shewathai Hup Soon in Singapore at the end of the month and expects sales of about 49 per cent of the total 52 units from the show.

Boon, who is also TEE's country director and handles the operations of five countries in Indochina - Thailand, Vietnam, Cambodia, Laos and Burma - said that this was a good time for investment in the property business.

This is because land prices have dropped significantly between 10 per cent and 20 per cent as many devel¬opers have suspended their invest¬ments because of a fall in demand for real estate.

"We have set aside an investment budget of between Bt700 million and Bt800 million for the last quarter of the year and the start of next year to buy three or four plots of land to develop our new residential projects - detached houses and condomini¬ums - next year," he said.

He said the project value would average Bt500 million each.

Three projects will be launched next year.

Boon said although the global economic recession could affect Thailand by next year, the company believes that developing residential projects at good locations will help it ride out the downturn better.

With its business expansion, Chewathai will increase its registered capital from Bt100 million to Bt300 million next month.

"Our major shareholders, our Thai partner and the Singapore com¬pany, are willing to put in cash to increase the registered capital. This is a good time for us to expand because other developers have sus¬pended investments due to liquidity problems," he said.

The TEE Group is also interested in expanding its investment in Vietnam next year by focusing on residential projects worth between US$20 million (Bt693 million) and $30 million.