8 Nov 2017
PF and GRAND team up with "SUMITOMO FORESTRY" to develop high-end condominium at the heart of Sukhumvit road
11 October 2017: Property Perfect Plc. (PF) and Grande Asset Hotels and Property Plc. (GRAND) unveil the joint venture with "Sumitomo Forestry Co.,Ltd.", Japan’s leading timber and home building firm, to develop property projects in Thailand starting with the Bt4,514 million super-luxury condominium.
The milestone joint venture contract was signed recently at the Royal Thai Embassy in Tokyo, to mark the Thai and Japanese property development companies’ cooperation, by Property Perfect Chief Executive Officer Mr.Chainid Adhayanaskul, Grande Asset Hotels and Property Director and Executive Director Mr.Vitavas Vibhagool and Mr.Akira Ichikawa, President, Sumitomo Forestry Co., Ltd., Mr. Tatsuo Iwagaki Managing Director, Sumitomo Forestry (Singapore) Ltd. Witnessing the signing ceremony was Ambassador of Thailand Mr.Bansarn Bunnag and Mr.Bhichai Rattakul.
Under the agreement, a joint venture has been set up, 40% owned by Grande Asset, 11% by Property Perfect and 49% by Sumitomo Forestry (Singapore) Ltd. which is a wholly-owned subsidiary of Sumitomo Forestry. It will develop the Bt4,514 million 38-floor luxury condominium which will come with approximately 400 units. The 2.5-rai land plot is situated on Sukhumvit Road between BTS Thonglor Station and BTS Ekamai Station. The location is 350 metres from BTS Thonglor Station. The project launch and construction is scheduled to start in 2018 for completion in 2020.
Mr. Chainid noted that the cooperation with "Sumitomo Forestry", of which history dates back 326 year and which has been a leading housing builder in Japan, marks a new chapter in property development business and will also strengthen the group's competitive advantage thanks to the partner's solid financial status, well-recognized technology and know-how. These will add value to the group's project and allow it to reach Japanese buyers who are main patrons of Thonglor area.
“Thonglor is one of the most popular locations of luxury condominiums. Though a sizeable number of projects were launched in the past 1-2 years and spurred competition, demand remains brisk and target buyers – local and foreign who are looking for their own accommodation and property for rent - have high purchasing power. As prices escalate, we are confident that we find the right location and will offer a property that suits buyers’ preferences. In particular, we have a partner who can strengthen our operations. Aside from this project, we are exploring further cooperation in the future.”
Mr. Vitavas said that the Thonglor project is designed to be a timeless property, boasting both classic and modern designs, supported by Grande Asset’s extensive experience in developing luxury projects in Sukhumvit area. Grande Asset’s portfolio include Hyde Sukhumvit 11, Hyde Sukhhumvit 13, 5-star The Westin Grande Sukhumvit Hotel and Hyatt Regency Bangkok Sukhumvit, a new hotel at Sukhumvit 13 which will commence operations early next year.
Mr. Ichikawa added: “Thailand’s ongoing transport infrastructure development encourages us to invest in a residential project in the country. This cooperation is the beginning of our long-term partnership with Property Perfect Group and Grande Asset, leading property development firms in Thailand, and also the start of our foray into property development business across Asia to generate more overseas income. This is on top of our investment in the United States and Australia. We forge this partnership because we see an opportunity in Thailand which continuously enjoys economic growth and increasing population. Also, this partnership marks a special occasion as Thailand and Japan are celebrating the 130th anniversary of bilateral relations.”
About Sumitomo Forestry
The Sumitomo Forestry Company was founded over 300 years ago in 1691, when the Sumitomo family started providing timber to the Besshi Copper Mine, located in the Ehime Prefecture of west Japan. Its mission is “To contribute to society, economy, and environment through the boundless possibilities of timber.” Sumitomo Forestry is today a forefront company operating extensive businesses in Japan and overseas, covering Housing Business, Timber and Building Materials Business, Forestry & Environment Business, and Lifestyle Services Business.
Regarding the Housing Business, Sumitomo Forestry started the housing construction service in 1975, boasting its expertise in traditional Japanese custom-built detached wooden houses. It also pioneered the big-frame construction method in Japan. Sumitomo Forestry has so far built approximately 280,000 detached houses and expanded the business to cover renovation, landscaping, property brokering and rental property management services.
As for overseas business, Sumitomo Forestry is constructing comfortable houses adapted to the cultural demands of every country, and currently selling over 7000 houses a year in America and Australia. In Asia, their network is being expanded to include condominium development projects in Vietnam and Hong Kong. And now it is ready to invest in its first real estate development in Thailand and to share vast experiences and technology for even further advances in the country’s development of pleasant living environments.