PF seeks joint ventures with big players

PF seeks joint ventures with big players

Developer plans huge retail investments

SET-­listed developer Property Perfect Plc (PF) is in talks with Thai and Japanese partners over joint ventures in the retail, condo and hotel sectors worth a combined 20 billion baht this year, with one likely to be wrapped up in the first half.

Chief executive Chainid Adhyanasakul said the company's expansion into the retail sector would need a huge investment amid high competition in the property market, where giant conglomerates like CP Group, TCC Group, Singha Corporation and CPN Group have jumped on the bandwagon.

"The Thai property landscape has changed. Some developers have joint ventures with larger players or those in other businesses," he said yesterday. "Property Perfect needs strategic partners to compete with them and keep growing."

The developer will finalise a deal in the first half with a Thai or Japanese partner to invest in We Retail Co, its retail subsidiary.

We Retail will invest in projects on Ram Intra Road and Ratchadaphisek Road in Bangkok and in Chon Buri's Si Racha district with a combined value of 10 billion baht.

The Si Racha project will be located on a 34.5-­rai leasehold plot under a 30-­year contract on Sukhumvit Road.

Dara Harbour, worth 4.5 billion baht, will comprise a four-storey retail space of 64,000 square metres and two high-rise residential towers providing a condo, hotel or serviced apartments.

"If the Japanese partner, who has expertise in residential development and mass transit construction in Japan, agrees to join with us in retail business, a residential project in Si Racha will be the next venture," Mr Chainid said.

Property Perfect subsidiary Grande Asset Hotels this year will invest 2.4 billion baht to develop two hotels and 2.5 billion baht to develop a luxury condo project with a sales value of 4 billion baht.

"From 2016 onwards, we will establish a real estate investment trust and gradually sell one of the hotels and retail properties into it, with at least one piece worth around 2 billion baht per annum over the next five years," Mr Chainid said.

Property Perfect this year plans to launch 17 residential projects worth a total of 24 billion baht, comprising 12 single-house and townhouse sites worth 16.84 billion and five condo projects worth 7.2 billion.

Most will be located in new locations near new mass transit lines.

It aims to achieve 16 billion baht in both presales and revenue from residential development this year, up from 10.6 billion and 9.8 billion baht respectively in 2015, which was below the target of 15 billion baht each.

PF shares closed yesterday on the SET at 0.78 satang, unchanged, in trade worth 3.37 million baht. 

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