Japanese conglomerate Tokyu Corporation plans to spend ¥10 billion (2.74 billion baht) over the next six years on property development in Thailand through its joint venture with consumer product giant Saha Group.
Akito Toba, managing director of Saha Tokyu Corporation, said the company would like to invest in projects including hotels, serviced apartments and the railway system.
"Our partnership with Saha Group will be a long-term venture," he said.
Outside Japan, Tokyu Corporation has invested in property markets in Hawaii and Seattle in the US and Binh Duong province in Vietnam.
Its first project in Thailand will be Harmoniq Residence Sriracha worth 900 million baht on a 30-rai site owned by Saha Group in Si Racha district of Chon Buri province.
Mr Toba said Si Racha had the second-largest Japanese population in Thailand, just behind Bangkok, as many Japanese firms continued to set up factories in the area.
Harmoniq Residence will comprise 180 serviced apartments at rental rates of 60,000 to 70,000 baht per month, targeting Japanese expatriates working on industrial estates.
Being built with the SCG Heim modular home system, the first phase with 69 units will be completed in October, with the remaining units following next year.
Mr Toba said the company expected to have 130-150 million baht per year in rental income from the project.
About 1,600 Japanese firms have operations in Thailand and the number of Japanese residents in the country is now more than 59,000.
Thailand provides a good environment for the manufacturing industry including well-developed infrastructure, a high-quality workforce and broad-based business clusters and locations.
The kingdom is now an export base for Japanese firms to third markets, Mr Toba said.
Saha Tokyu Corporation was established in October last year with registered capital of 332 million baht, with Saha Group and Tokyu Corp respectively holding 50% and 45%.
The remaining 5% is held by construction firm Ch. Karnchang-Tokyu Construction Co, one of Tokyo Corp's subsidiaries and a joint venture with Thai contractor Ch. Karnchang Plc since 1981.
Saha Tokyu Corporation was Tokyu Corp's fourth venture in Thailand. It opened a Tokyu Department Store at Paradise Park shopping mall last week to join the one it launched at MBK shopping centre 28 years ago.
Hideo Miyagawa, deputy managing director of Ch. Karnchang-Tokyu Construction, said the company had 15 construction projects on hand worth 3.4 billion baht. About 80% are factories and 20% mass transit lines.
It expects to realise 3.4 billion baht in revenue this year, up from 3 billion baht last year.