Property developer Siamese Asset Co plans to launch seven new projects worth over 13 billion baht in total and is shifting to tap into investment buyers.
Siamese Asset Co will launch Siamese Exclusive Queens with 331 units worth 2.98 billion baht on Ratchadaphisek Road opposite Queen Sirikit National Convention Centre.
Managing director Kajonsit Singasansern said there is strong demand from investment buyers, both local and foreign investors, looking for condo units in Bangkok's prime locations for rental.
"To tap into this demand, the new condo projects we plan to launch from this year onwards will have separate facilities like lobbies and swimming pools that serve tenants and unit owners separately," he said.
"We will also reserve some floors for investment buyers so that owners will live with tenants."
He said the company observed a trend of condo purchases for investment from previous projects it launched. At those projects, there were both unit owners and tenants, and unit owners were sometimes unhappy with new faces renting units.
To support this new market, it has affiliate firms, including property management company Siamese Property Service Co and rental management firm Siamese Hospitality Co.
He said investment buyers were not only Thai but also foreigners, mainly from China and Hong Kong, followed by others, including Singaporeans, Japanese and Europeans as the company had partnered with Singapore-based property agent Angel Real Estate Co a few years ago.
"Investment condo units in prime areas like Sukhumvit Road can generate a yield of 6-11% per year, depending on the location, as it is preferred by foreign tenants," he added.
This year, Siamese will launch six condo projects in six locations including one on Ratchadapisek Road opposite to Queen Sirikit National Convention Center, Sukhumvit Soi 42, 16, 48 and 81 and near Fashion Island on Ram Intra Road.
It expects to have 10 billion baht in presales and 2.17 billion in revenue by the end of the year, up from 7 billion and 1.3 billion in 2016, respectively.
Last year, the company's sales proportion to foreign buyers rose to 49% of total sales from 25% a few years ago.
Siamese Asset increased registered capital to 880 million baht in December last year from 830 million. It plans to file a listing plan by the middle of next year and an initial public offering in early 2019 with Asia Plus Securities as a financial adviser.