Thanasiri open to partnership model
Land and building tax pushes owners to make use of plots
published : 13 May 2023 at 09:20
newspaper section: Business
writer: Kanana Katharangsiporn
MAI-listed developer Thanasiri Group is open to partnerships with investors and landlords as the land and building tax nudges owners to utilise their assets.
Chief executive Sutthirak Sateanraphap-a-yut said many land plots were put up for sale following the implementation of the land and building tax a few years ago. However, not all landlords want to dispose of their entire land holdings.
"We are in discussions with investors and landlords to determine the most suitable partnership model," he said.
"We anticipate finalising a deal within this year, which would be our first collaboration under this model."
The company has two joint venture firms, both of which involve co-investing in land and project development.
The first is Pimansiri, a partnership with Isaan Piman Group, which is a property developer based in Khon Kaen.
Thanasiri holds a 60.75% stake in this venture, which launched its first project in Udon Thani in 2017.
The second is Anabuki Thanasiri (Thailand), a joint venture with the Japanese real estate group Anabuki, in which Thanasiri holds a 50% stake.
The firm launched three housing projects in the Ratchaphruek area of Nonthaburi and Bang Bo in Samut Prakan.
"While we do not have any strict conditions, it is important for our partners to understand that our business model places a strong emphasis on after-sales service and taking care of our customers in the long run," said Mr Sutthirak.
Thanasiri also wants to diversify into a wellness and healthcare service business, he said.
The company planned a joint venture with a partner in physical therapy, aiming to launch the first facility in front of a project in the Ratchaphruek area by the end of 2023.
For the remainder of the year, the developer expects to launch four new projects worth a combined 3.3 billion baht in the Bang Bo, Pin Klao and Ratchaphruek areas.
These projects comprise townhouses, semi-detached houses and single detached houses with average prices of between 2.9 to 17 million baht.
In the first quarter this year, the company recorded 332 million baht in revenue, growth of 47% year-on-year, with net profit of 39.2 million baht, up 20%.
Thanasiri expects to earn 1.3 billion baht in revenue this year, an uptick of 30%.