Tokyo: Mitsui Fudosan Co, the real estate division of Japan's Mitsui Group, is continuing its property investment in Thailand with SET-listed developer Ananda Development Plc (ANAN).
It plans to launch five new condo projects worth a combined 19 billion baht in the next 10 months.
Executive managing officer Akihiko Funaoka said the Thai government planned to increase the number of mass-transit stations in Greater Bangkok to 266 by 2019 from 67 now, thus attracting foreign property investors.
"Compared with its neighbours, Thailand is developing its mass-transit system with many new lines and extensions in the pipeline," he said yesterday. "When Asean integration takes effect, the country will become a major regional hub."
Mitsui Group has earmarked 155 billion baht for property investment outside Japan from 2015-17.
In Southeast Asia, it will continue investing in Singapore, Kuala Lumpur, Jakarta and Bangkok but has not yet set an amount for each.
The group partnered with Ananda in 2013 to form the joint venture Ananda MF Asia Co, in which the two own 49% each and individual investors the other 2%.
The joint venture launched four condo projects worth a combined 26 billion baht between 2013 and this year's first quarter.
"We're interested in Ananda because it is a first mover in potential new locations," Mr Funaoka said.
"The developer has never had a problem obtaining [construction] permits."
The investment will continue with five new condominium developments comprising a combined 4,200 units.
Three will be located near existing stations — a 40-storey building with 359 units worth 3 billion baht in Chidlom area, a high-rise worth 5.8 billion baht on Silom Road around the corner from Chong Nonsi skytrain station and a 4.8-billion-baht project on 14 rai near Bang Na skytrain station.
Two others will be near future mass-transit stations — a 2.5-rai site near Bang Sue station and a four-rai plot near Tha Phra station, with projected sales value of 2.4 and 3 billion baht, respectively.
Mitsui's combined spending alone for the nine total projects is set to be 5 billion baht.
"We see no bubble in the Bangkok condo market, as condo prices are still not exceeding consumer's affordability," Mr Funaoka said. "But we're keeping an eye on the situation, as the market can always change."
He said Thailand in general but particularly Bangkok was one of the most attractive markets for investment in this region due mass-transit plans.
Ananda Development chief executive Chanond Ruangkritya said his company had revised up this year's presales target by 11% to 25.6 billion baht after posting 10 billion baht in presales from January-April.
ANAN shares closed yesterday on the SET at 3.56 baht, up four satang, in trade worth 17.8 million baht.