Sumitomo sets Y50bn for investment abroad

Real Estate November 09, 2017 01:00

By SOMLUCK SRIMALEE
THE NATION

JAPAN-BASED Sumitomo Forestry Co Ltd has budgeted 50 billion yen in overseas investments until the end of 2019, including Thailand where it will launch condominiums and single detached house worth a total of Bt40 billion from 2017 to 2020, company's president Akira Ichikawa said after a press conference yesterday.



The Japanese company will co-invest in Thailand with its strategic partners Grande Asset Hotels and Property Plc and Property Perfect Plc. The joint venture projects include luxury condominium Hyde Heritage @ Thong Lor worth Bt6 billion. Construction will start next year for completion in 2020. Prices will range from Bt300,000 to Bt350,000 per square metres, Ichikawa said.

He added that the company will launch one condominium project a year in Bangkok worth up to Bt10 billion each , in joint ventures with its Thai partners Property Perfect Plc and Grande Asset Hotel and Property Plc. It also plans to launch single-detached houses in suburban areas and the provinces, worth an average of Bt3 billion per project, in joint venture with Property Perfect Plc.

Ichikawa said that the company is also interested in investing in the wood processing business in Thailand, awaiting a study of Thailand's foreign investment act. It is also looking at the wood industry in Malaysia and Myanmar.

Currently, Sumitomo has investments in three countries in Asean including Indonesia, Vietnam, and Thailand.

Property Perfect Plc's chief executive officer Chainid Adhayanaskul confirmed that the company will launch condominium and single detached house projects in joint ventures with Sumitomo Forestry Co Ltd ,worth Bt40 billion from 2018 to 2021.

“High competition has continued in the Thai property market. It is necessary to have strategic partners in the development of our residentail projects, especially in regards to technology," he said.

Property Pefect plans to launch 25 residential projects worth Bt31.41 billion in 2018, excluding the residential developments in joint ventures with Sumitomo, in order to achieve a revenue growth of 24 per cent in 2018 from the target set for this year, he said.