Japanese developer Shinwa Real Estate is making a foray into Thailand's property market in a bid to extend its reach in Southeast Asia through its first overseas joint venture.
Osaka-based Shinwa recently set up a joint venture called W-Shinwa Co with Woraluk Property Plc to develop property projects at Japanese standards in Bangkok.
Capitalised at 275 million baht, the joint venture is 51%-owned by Shinwa and its subsidiary and 49%-owned by the Thai firm.
"This is the first overseas joint venture for Shinwa Group, and we are confident in the business opportunities we see in the Thai market," said W-Shinwa co-chief executive Tomoyasu Yamabe.
Mr Yamabe expressed hope that the new investment will help Shinwa expand its operations to other Southeast Asian countries.
The group is also eyeing Thailand as a base to expand to the US and Europe.
Mr Yamabe said that despite active new supply in the Thai condominium market, Shinwa Group still believes in the joint venture's potential, citing the group's clarity in design and construction, plus a strong location.
Residential projects under Shinwa brands, which have been widely accepted by Japanese customers, are expected to draw a positive response not only from Japanese expats, but also Thais and foreigners who favour a Japanese lifestyle, Mr Yamabe said.
Wichai Chula-Olarnkun, co-chief executive of W-Shinwa, said the joint venture initially plans to develop a Japanese-style residential project in Bangkok's central business district by utilising Shinwa's construction and design innovation under the Runesu brand.
Its first project, dubbed Runesu Thonglor 5, worth 1.2 billion baht is an eight-story condominium will come complete with a Japanese garden, spas, pool and other amenities. It will have 156 units measuring 29 to 65 square metre, with prices starting at 4.9 million baht.
Construction will begin in the second quarter of next year and the condominium is scheduled for completion in 2018.
"Japanese residents are considered good tenants and Thong Lor is currently the most popular neighbourhood in Bangkok among Japanese expats," Mr Wichai said. Runesu Thonglor 5 will be the first authentic Japanese condominium in Thailand targeting a "niche market", he added.