Mitsui Fudosan forms third local partnership
text size

Mitsui Fudosan forms third local partnership

Listen to this article
Play
Pause

Japanese developer Mitsui Fudosan continues to reinvest in Thailand's property market, with a recent joint venture with SET-listed Sansiri marking its third partnership with a local developer since entering Thailand in 2013.

The latest investment, made through its subsidiary Mitsui Fudosan Asia Development (Thailand) (MFADT), is the company's second in Thailand this year, following a US$69.2 million investment in June.

The June deal involved the purchase of the remaining 51% of ordinary shares in five joint venture companies.

These companies were co-invested with SET-listed developer Ananda Development, which held 49% and 51%, respectively.

The firms own five serviced apartments with more than 1,800 rooms operated by The Ascott Limited, including two under the Ascott brand: one in Thong Lor valued at 3.47 billion baht and another on Sathon Road valued at 3.34 billion.

Two other properties are under the Somerset brand -- one on Rama IX Road worth 2.5 billion baht and another in Pattaya worth 1.9 billion baht -- as well as Lyf Sukhumvit 8 worth 644 million baht.

According to a report from Sansiri, the company entered joint ventures with MFADT, holding stakes of 55% and 45% respectively, to develop two luxury single detached house projects valued at a combined 6 billion baht, slated for launch next year.

The first project, Narasiri Bang Na KM 10, is worth 4.1 billion baht and occupies a 38.5-rai plot within the 156-rai luxury community Sansiri 10 East in Bang Phli district, Samut Prakan. Unit prices are expected to range from 55 to 120 million baht.

The second project, Burasiri Chatuchote, is valued at 2.08 billion baht and spans nearly 50 rai within Sansiri's 184-rai Chatuchote Community, which is under development. Unit prices for this project range from 14 to 25 million baht.

Mitsui Fudosan is Sansiri's second Japanese partner, following Tokyu Corporation, which began joint ventures with Sansiri in 2017.

Their collaboration developed six joint venture projects, including four condo developments and one single detached house project.

Sansiri is Mitsui Fudosan's third Thai partner. The Japanese developer first partnered with Ananda in 2013, co-developing 29 condo projects with more than 24,000 units.

Mitsui Fudosan's second Thai partnership was with SET-listed Frasers Property (Thailand) in 2019, resulting in two large-scale industrial parks spanning 255,000 square metres in Bang Pakong, Chachoengsao, and Wang Noi, Ayutthaya.

Do you like the content of this article?
COMMENT