On Monday, two real estate companies announced their statements about the establishment of joint venture companies, which were rarely seen in the market.
Mr. Uten Lohachitpitaks, CEO of Pruksa Holding Public Company Limited (SET: PSH), stated that the company had signed a joint venture agreement with the three subsidiaries of Origin Property Public Company Limited (SET: ORI), including One Origin Public Company Limited (ONEO), Park Luxury Company Limited (PARK), and Britania Public Company Limited (SET: BRI), to construct and develop three projects worth THB 8.7 billion, with a shareholding between PSH and the subsidiary of ORI at a ratio of 50:50 in each project.
The said projects included 1. a joint venture in the mixed-use project of hotels, service apartments, and health center, located in Sukhumvit, with the project value of THB 5 billion with the sale date at the end of 2027; 2. a joint venture in developing a premium condominium project, located in Paholyothin, with the project value of THB 2.8 billion with the sale date at the start of 2025; and 3. the development of a premium detached house project, located in Petchkasem, with the project value of THB 980 million. All of the mentioned projects will start the construction process at the end of 2024 and will start selling at the start of 2025.
The establishment of joint venture companies in order to develop real estate projects is considered a win-win agreement for both companies and will benefit them by developing the existing resources and lands as well as sharing technologies and know-how.
Mr. Uten stated that the strong point of PSH Group is the strength in its capital with the commitment to develop good and healthy residences through complete residential and health innovation with the support of various businesses, including real estate development and construction businesses, which consist of ViMUT Hospital and Theptarin Hospital, and e-commerce businesses, which develop MyHaus, a smart home technology, to support people to live a better life in their residences, as well as the construction of residences with care for the environment with the low-carbon precast concrete from Inno Precast Company Limited, a subsidiary of PSH.
He also added that the PSH’s specialty in controlling construction quality, combined with the ORI’s specialty in developing real estate in hotel and hospitality businesses as well as real estate for commercial purposes, will support these 3 projects in becoming successful. Moreover, PSH will also benefit from the development of its existing land through the new brand in order to build a larger client base and add another way for the company to recognize its recurring income.
Mr. Peerapong Jaroon-ek, CEO of Origin Property Public Company Limited (SET: ORI), stated that the addition of PSH in developing various projects will construct a trade in innovations, technologies, knowledge, and specialties for both companies and uplift the level of the development of construction quality, function design, and build area, which will satisfactorily fulfill the needs of living in each location.
He added that the joint venture between major real estate developers was rarely seen in Thailand, while it was normal in a country like Japan, as each developer possessed different types of specialties. ORI Group aimed to develop and create functions and innovations to serve the purpose of the residence and relaxation of people in the new generation, such as the development of condominiums for pet lovers, duo-space rooms with 4.2-meter ceilings, and detached houses with universal design, while PSH was a major real estate developer with a specialty in constructive innovations and project development experiences.
As a result, it is believed that the joint venture will fulfill proficiencies and opportunities for both developers and that the cooperation between ORI and PSH will create a new image for the field of real estate in Thailand as two of the top businesses in the market join forces to develop hotels, condominiums, and detached houses to enhance recreation and living for consumers.
