Ananda Development Plc (ANAN), the SET-listed property developer, has inked a joint venture agreement with Mitsui Fudosan Residential Co, Ltd to develop property projects in Thailand with initial capital of 1.8 billion baht.
President and CEO Chanond Ruangkritya said Ananda would hold a 49% stake in the new joint venture firm, with the Japanese company holding the same figure and the remainder held by individual investors. MFR is a subsidiary of Mitsui Fudosan Co Ltd, which posted revenue of Y1.445 trillion (US$14 billion) at the close of the last financial year.
"Ananda Development is honoured to partner Mitsui Fudosan, one of Japan's most renowned property developers. This is the result of intensive research of Thai developers by Mitsui Fudosan and extensive discussions between the two companies and we consider this to be a major endorsement of Ananda," said Mr Chanond.
"We hope this partnership will pave the way to even greater exposure of the Ananda brand to the Japanese market."
The partnership will also help enhance competitiveness and boost business opportunities for Ananda, he said, adding that the first project of the joint venture firm is anticipated very soon.
According to property consultant CB Richard Ellis (Thailand), Ananda is the leading condo developer with the largest number of units within 300 metres of existing mass transit stations.
During the first three months of the year, it spent 2 billion baht acquiring plots for new projects and will invest a further 3 billion baht to buy more later this year.
Ananda plans to launch 13 new projects _ seven low-rise ones and six condos _ worth more than 24 billion baht in 2013.
It targets to achieve 14.9 billion baht in presales and 12 billion baht in revenue this year. Currently, it has a sales backlog of 7.8 billion baht compared to a net loss of 287 million baht on revenue of 5.13 billion baht last year, both down 10% year-on-year.
ANAN shares closed unchanged yesterday on the SET at 3.18 baht in trade worth 23 million baht.