Damac Group, a property developer from the United Arab Emirates, is looking to invest in a branded residence project in Bangkok through a joint venture with a local developer following its US$1 billion investment in data centres this year.
The group's founder Hussain Sajwani said investment in residential projects will begin next year, with a focus on branded residences, matching the company's residential development portfolio that targets the luxury segment.
"We have not set an investment budget for residential development in Thailand," Mr Sajwani said during a visit to Bangkok, where he announced the group's $1 billion investment in data centres, marking its first venture in Southeast Asia.
According to property consultant CBRE Thailand, the sales performance of branded residence projects in Bangkok with units priced from 350,000 baht per square metre was the strongest in the condo market, achieving a 90% sales rate in the first half of 2024.
The most recent branded residence launch was Porsche Design Tower Bangkok worth 15 billion baht on Sukhumvit Soi 38.
Ananda Development Plc unveiled this project in August this year and is seeking a co-investor.
Following discussions early last year, Damac Group yesterday signed a collaboration agreement with Proen Corp, an MAI-listed ICT firm and data centre provider. Both will co-invest in Seashore Data Center and Cloud Services Co, with Damac holding a 70% stake and Proen 30%.
The first data centre the joint venture plans to invest in is Proen OTT DC, a five-storey facility with a construction area of 10,000 sq m on a 3.43-rai plot located on Rama 9-Srinakarin Road in the Suan Luang area, which is currently owned by Proen.
According to Proen's report to the SET last month, the company plans to sell this property to Seashore for around 833.2 million baht, comprising data centre equipment worth 464.2 million baht and the land and building valued at 369 million baht.
Renamed Edgnex Data Centers by DAMAC, the first phase features 5 megawatts of capacity with a total investment of 1.7 billion baht, equating to 350 million baht per MW, said Kittipan Sri-bua-iam, chief executive of Proen.
"Revenue from the first phase is expected to be realised by the end of this year," he said.
"The next phase, which will have an additional 15MW at the same site, is set to begin in February 2025."
Seashore aims for a total capacity of 100MW in a few years, with 20MW allocated to each location, including Navanakorn in Pathum Thani, Bang Na and Sri Racha in Chon Buri, where Proen has plots exceeding 100 rai, said Mr Kittipan.