Mid-sized developer Thanasiri Group Plc will scale up to launch new residential projects worth 2 billion baht in 2023, double the usual value, after a Japanese partner co-invested two years ago.
Chief executive Sutthirak Sateanraphap-a-yut said the company planned to launch four projects next year, up from the usual 2-3 projects, worth a combined 1 billion baht per year. Of the launch value, 40% will be joint ventures.
"One of the new projects will be in the Bang Na-Bang Bo area which is a new location for us," he said. "It will be the third joint venture project with Japanese real estate firm Anabuki Kosan Inc."
The project will be located on a 30-rai site on Bang Na-Trat KM 26, comprising 200 units of townhouses and duplex houses priced around 2 million baht a unit, targeting those working for the industrial sector.
Thanasiri and Anabuki set up a joint venture in 2020 and launched two residential projects worth a combined 1.5 billion baht in 2021-22.
Last year 30-40% of Thanasiri's revenue was from joint venture projects.
"We will reach 1 billion baht in revenue this year, the first time since our establishment 35 years ago," said Mr Sutthirak, the company's second-generation executive after his parents.
"It will be almost double the growth from last year when we recorded 580 million baht."
In the first half of 2022, the company recorded 445 million baht in revenue, up 63% from the same period last year.
Presales rose to 561 million baht from 288 million baht. Of the total presales, 35% stemmed from joint venture projects.
Being driven by joint venture projects, the company aims to see revenue growth of 30-40% in 2023 and more than 2 billion baht in revenue in 2024, he added.
"The Japanese partner has experience in medical services, particularly senior living and nursing care. We will learn from them and will apply wellness to our residential projects as Thailand will have a larger senior population in the future."
To cope with the rising cost of development exacerbated by the Russia-Ukraine war, the company will apply total green development services.
These will cover concept development, land acquisition, design, marketing and sales, construction, handover and property management, said Charan Kesorn, chief operating officer.
"Green construction can help save construction costs, which account for 40% of project development value, by 2%," he said.
"We will set a new construction standard to control both quality of product and cost of development and to deliver houses as scheduled."