Mitsui Fudosan, Ananda join forces for Bt6.5 bn condo on Rama IV

Mitsui Fudosan Residential Company is confident in the continued growth of the ASEAN economies and is expanding into Thailand, Indonesia and Malaysia this year after first investing in Singapore 40 years ago.

“We are confident that ASEAN countries’ economies will still grow, especially the Asean-5 countries – Thailand, Singapore, Indonesia, Malaysia and the Philippines – by the targeted 5 per cent next year. Although they are facing low growth in the second half of this year, it is a short-term situation,” group chairman and chief executive officer Kiyotaka Fujibayashi said.

The group early this year invested more than Bt10 billion in residential and retail projects in Thailand, Indonesia and Malaysia.

In Thailand, Mitsui Fudosan set up a joint-venture firm with Ananda Development, Ananda MF Asia, with registered capital of Bt900 million. The Japanese company holds a 49-per-cent stake in the JV, 49 per cent is held by Ananda Development, and the rest by minor shareholders.

Ananda MF Asia has set aside an investment budget of Bt1.8 billion, half from the company’s capital and the rest borrowed from the major shareholders, to develop Ideo Q Rama 4, a condominium project worth Bt6.5 billion near the Sam Yan MRT station. The project will open to presales in the fourth quarter, and plans to be complete and transferred to customer in 2016 at a starting price of Bt2.89 million per unit. A project loan from Bangkok Bank has already been approved.

“We also plan to develop an average of two residential projects worth Bt10 billion a year by way of our joint-venture firm,” Fujibayashi said.

Ananda MF Asia is also interested in developing office and retail projects in the future.

In Malaysia and Indonesia, the group is also investing through joint ventures with local partners to develop the both residential and retail projects, Fujibayashi said.

Mitsui Fudosan Residential is a leader in the Japanese property market. The group recorded total sales this fiscal year (April 2012-March 2013) worth Bt466 billion. It develops and transfers to customers 5,000-6,000 residential units a year.

Ananda Development president and CEO Chanond Ruangkritya said the JV firm would focus on large residential projects worth more than Bt5 billion, while Ananda Development itself would continue to develop condominium projects worth up to Bt3 billion.

“To expand our investment into larger projects, we needed a partner to reduce our business risk for the long term,” he said.

Ananda Development plans to launch nine new condominium projects worth Bt10 billion in the current second half, two of which opened last week worth Bt3.2 billion.

It will deliver Bt10.2 billion worth of homes to its customers this half, including Bt1.02 billion worth in the current quarter. The remaining Bt9.2 billion worth will be booked as revenue in the fourth quarter. This will result in a net profit for the full year, he said.

Ananda Development recorded revenue of Bt1.9 billion and a net loss of Bt91.3 million in the first half.

By Somluck Srimalee
The Nation

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