SET-listed developer Nirvana Daii (NVD) has co-invested with KE Group to develop a high-end housing project worth 2.6 billion baht on New Krungthep Kritha Road, with former chief operating officer of Raimon Land, Adrian Lee, joining the development.
Sornsak Somwattana, chief executive of NVD, said the joint venture dubbed Nirvana Ally Development Co (NAD) is 49% held by NVD and Ally Capital 1 (Thailand) Co, which is one of KE Group's subsidiaries.
The project, Nirvana Beyond Rama 9 -- Krungthep Kritha, is located on a 27-rai plot on New Krungthep Kritha Road where NVD holds more than 200 rai of land from a total of 267 rai in its land bank portfolio as of the end of 2021.
In the second quarter of last year, it sold 10 rai on this road at a price of 272 million baht to reform its balance sheet which was impacted by the pandemic.
"KE Group developed several ultra-luxury residential projects in the Kaset-Nawamin area and community malls like Crystal Design Center," Mr Sornsak said. "Those experiences can help NVD tap the high-priced segment."
With 90 single detached houses units, NVD aims to have 485 million baht in presales from the joint venture project by the end of 2022.
Development of the project will be managed and operated by KEX Co, a joint venture between Adrian Lee, former chief operating officer of Raimon Land Plc, and KE Group which was established in mid-2021.
"We will spend more than 200 million baht to co-develop the project which will be our first one," said Mr Lee. "KEX will not only focus on residential development but also other property categories and mixed-use projects."
Kavin Eiamsakulrat, managing director of Ally Capital 1 (Thailand) Co, said New Krungthep Kritha Road is similar to Ekamai-Ram Intra Road where the majority of residential projects were in the high-priced segment.
"Housing prices on New Krungthep Kritha Road increased by 10% during the past five years," he said.
In 2022, NVD planned to launch six new projects worth a combined 8.7 billion baht with a focus on low-rise houses and is expected to have 5.6 billion baht in presales, up 50% from 2021.