Japanese real estate firm Hankyu Hanshin Properties Corp has set up a joint venture firm with SET-listed Sena Development for future residential developments, following a seven-year partnership involving 66 projects worth a total of 83 billion baht.
Masahiko Toda, director of the overseas business headquarters at Hankyu, said the company remains confident in the Thai economy and residential market despite higher living costs challenging home demand.
"The current housing market is unfavourable," he said.
"But every downturn has an upturn. We are confident the market will recover and grow again."
Mr Toda said the establishment of the joint venture between Hankyu and Sena demonstrates the company's long-term commitment to Thai residential market investment.
Since 2016, Hankyu has spent a total of ¥25 billion, or 6.3-6.5 billion baht, in joint ventures with Sena to develop 66 residential projects worth a combined 83 billion baht, including both condos and low-rise houses.
This investment accounts for 50% of the total amount Hankyu has invested in Australia and Southeast Asian countries, comprising Indonesia, Malaysia, the Philippines and Thailand.
"Thailand has the largest mass transit network compared with other destinations where we have investments," he said. "It is much easier for us to get approval from our parent company, Hankyu, which is a railway company, for investing in Thai residential projects."
Kessara Thanyalakpark, managing director at Sena, said establishing a joint venture makes investments more efficient and flexible, while helping to control costs and accelerate operations through centralised financial management.
"Previously whenever we and a partner wanted to invest in a project, we would form a joint venture, creating one firm for one project. As a result, we established 66 firms so far," she said. "However, this approach doesn't allow us to plan beyond the current scope."
Sena founded Sena HHP Co in August last year with a registered capital of 1 million baht, which increased to 422 million after Hankyu co-invested in February 2024. Sena holds 51%, while Hankyu holds 49%.
"When the joint venture doesn't have new projects launching, it can focus on product development," said Ms Kessara. "We can also adopt new innovations from Hankyu to enhance our products."