SET-listed developer Major Development (MJD) will form joint ventures with two additional Japanese partners in luxury residential projects to diversify risk and expand its portfolio of sites.
Natha Kittiaksorn, MJD's deputy chief executive, said the prospective partners -- one large and one medium-sized -- are not new to Thailand as they have previously engaged in joint ventures with other Thai developers.
"We aim to have partners co-invest in every new project we plan to launch in the future," she said. "This strategy will help us minimise risks, expand to more new sites and reduce financial costs."
She said the joint venture projects with the Japanese partners would comprise condos and single detached houses in the luxury segment, which will be launched next year.
Earlier this month, MJD signed a joint venture contract with Mori Trust, a Japanese real estate developer specialising mainly in hotels and resorts, for a luxury single-detached housing project called Malton Gates Krungthep Kreetha II, valued at 2.1 billion baht.
"We had discussions with Mori Trust four years ago, but didn't finalise at that time as they were interested in the office sector, which was not our focus," she said.
The project will mark Mori Trust's first luxury residential venture overseas and their first investment in Southeast Asia, she said.
"Demand in the luxury segment is very robust. We sold out a luxury condo project within two months in the first half of the year and expect this momentum to continue," she said.
Driven by the luxury segment, MJD's presales in the first half of 2024 reached 5 billion baht, up 150% compared to the same period last year. The annual presales target for 2024 is 7 billion baht.
It plans to launch six new projects between now and next year, including three condo projects and three low-rise housing projects.
This balanced portfolio aims to increase revenue from low-rise houses to 40%, from 10%, by 2026-27.
One of the new projects is Milford Ladprao–Ramkhamhaeng, a townhouse development valued at 1.6 billion baht, featuring 84 units each priced between 18-35 million baht. The goal is to have 40-50% of the units sold by the end of the year.
The project is located on a 12-rai site on Ramkhamhaeng Soi 53 and is the company's first townhouse development in 24 years.