Phuket: SET-listed developer Charn Issara Development Plc (CI) has teamed up with China's Junfa Real Estate Co, the largest developer in Yunnan province, to launch a luxury beachfront villa, condo and hotel project worth 3 billion baht in Phangnga.
Chief executive Songkran Issara yesterday said the joint venture would help to draw Chinese buyers in the high-end segment, whose purchasing power remained strong despite the sluggish global economy.
"The world's economic situation affects the hotel business in Phuket, especially in the segment below three stars, but Chinese tourists help to drive the tourism industry," he said.
Luxury residential and hotel project the Baba Beach Club will be located on 42 rai with a 180-metre beachfront in Ban Na Tai, 28 kilometres from Phuket airport.
It will comprise six beachfront villas with five bedrooms priced 120 million baht, 40 pool villas priced from 16 million and 104 condo units priced from 11.9 million in buildings of two and four storeys.
Construction of a 60-room hotel will start in mid-2015 and operate next year.
The project will be developed by Issara Junfa Co, set up with registered capital of 420 million baht, with Charn Issara owning 70%, Junfa 25% and YMC Holding Co 5%.
Junfa's major shareholder was a buyer at Sri Panwa, a luxury villa project in Phuket developed and operated by Charn Issara since 2007.
"Junfa wanted to expand to the Thai property market, particularly in a resort destination," Mr Songkran said. "It is interested in developing a project in Bangkok."
He said Charn Issara planned to launch two projects in Bangkok — a medium-priced condo project worth 1.8 billion baht in the Soi Bearing area and a high-end single-house project worth 2.5 billion baht on a 35-rai site on Bang Na-Trat Road.
It will also spend 800 million baht to develop a hotel with 80 rooms under the Baba Beach Club in Cha-am near Baan Thew Thalay, a luxury condo in which Charn Issara co-invested with Sahapatanapiboon Plc and ICC International Plc.
CI shares closed yesterday on the SET at 2.24 baht, up four satang, in trade worth 4.4 million baht.