Property developer Altitude Development Co and Japanese real estate firm Creed Group announced fundraising success for their joint venture project Altitude Unicorn Sathorn-Tha Phra condominium.
The private equity fund to raise capital for the project is now closed, while 60% of sold units are expected to be transferred to buyers by the third quarter this year.
The 34-storey condominium worth 2.5 billion baht was jointly developed with Creed Group private equity fund under the name Altitude Creed Talad Phlu Co.
The level for sold units that are awaiting transfer is expected to reach 75% by year-end, said the developer.
Chayaphon Hunrungroj, chief executive of Altitude Development, said Altitude Unicorn Sathorn–Tha Phra is one of the few projects that recorded rising unit prices over the past three years in step with consistent new unit sales.
He said the joint venture's careful financial strategies and the project's popularity enabled it to close the private equity fund before all the purchased condo units were transferred.
This means the Japanese private equity fund received its annual investment returns on target as planned, while Altitude received higher than expected revenue and profits.
"Creed Group received high returns on their investments, on par with the period before Covid-19, even though many other private equity funds that invested in condominiums during the same time [from 2018-19] faced severe repercussions or have yet to receive payment," said Mr Chayaphon.
"These circumstances were a result of the pandemic-induced condo market slowdown, which led to [other operators] postponing both construction and sales."
Creed Group is evaluating the prospects of making additional investments in Altitude's upcoming projects.
Other projects in Altitude's portfolio range from condos such as Altitude Symphony Charoenkrung and One Altitude to detached homes and townhomes such as Altitude Craft Bangna, Altitude Forest and Altitude Mastery Sukhumvit.
Altitude plans to file to list on the Stock Exchange of Thailand in 2023.