Japan's Hankyu Hanshin Properties Corp says it will spend 2 billion baht a year during 2020-22 on property development via joint ventures with SET-listed Sena Development Plc.
Kazumasa Ohchi, senior general manager of Hankyu Hanshin Properties, said the spending budget for Thailand in the next three years represents a long-term investment in the country.
"We came to Thailand a few years ago because we were confident in the Thai economy, and today we remain feeling so," he said yesterday. "Gloomy sentiment is happening around the globe, and Thailand is no exception. But the Thai economy will recover soon."
Since 2016, Hankyu Hanshin has spent 2.8 billion baht in Thailand. The entire amount went to condo joint ventures with Sena. To date, the 13 joint ventures are worth a combined 37 billion baht.
The investment in the Thai property market is Hankyu Hanshin's largest in Southeast Asia, accounting for 50% of the total. The company entered the region for the first time in 2015 with an investment in Vietnam.
Expansion in Thailand and Indonesia followed in 2016, then the Philippines in 2017 and Malaysia in 2018.
Hankyu Hanshin Properties is an arm of Hankyu Hanshin Holdings Group, one of Japan's biggest railway firms.
Sena Hankyu Hanshin Co, a joint venture of Hankyu Hanshin Properties and Sena Development, yesterday signed a memorandum of understanding with Onyx Hospitality Group (under Italthai Group) to provide hospitality services at a joint venture condo.
The project is Piti Ekkamai, a condo launched last year with 879 units worth 5.6 billion baht, now 30-40% sold. When completed, the property will be managed by Elite Residences Co, a subsidiary of Sena Development.
Kessara Thanyalakpark, deputy chief executive of Sena Development, said condos priced at 150,000-180,000 baht per square metre will have hospitality services, something usually provided strictly for units priced above 250,000 baht.
"Onyx will help train our staff on how to provide hospitality services at a residential project," she said. "The services added to the condo will increase value and attract investment buyers amid high competition in the condo market."
Douglas Martell, Onyx's president and chief executive, said hospitality services offered at the project will include reception, concierge, doorman, bellboy and housekeeping.
SENA shares closed yesterday on the Stock Exchange of Thailand at 3.28 baht, down two satang, in trade worth 2.8 million baht.