Local JV of Malaysia's Prinsiptek launches townhouse project
A local joint venture set up in 2005 by Malaysian firm Prinsiptek Corporation to collaborate with the National Housing Authority of Thailand on a budget-housing project in Rangsit has launched a Bt900-million project of its own nearby.
The partners in the joint venture are Prinsiptek International and Prinsiptek Thai with registered capital of Bt2 million and Bt60 million respectively. They are 51 per cent held by a Thai investor, Veena Kia, and 49 per cent by Prinsiptek Corp. Prinsiptek Thai focuses on construction, while Prinsiptek International handles project development and sales.
Prinsiptek International managing director Foo Chu Jong said the company set up business in Thailand in 2005 to develop Baan Eua-Arthorn in Rangsit near Navanakorn Industrial Estate worth Bt650 million with the NHA. It had sold out by 2010.
The company then saw strong demand for residential projects in the Rangsit area, especially homes priced lower than Bt2 million, and it bought 39 rai 3 ngan (63,600 square metres) of land near Baan Eua-Arthorn. It then launched the second project, D Cube at Phaholyothin-Navanakorn, worth Bt900 million.
The project consists of townhouses starting at Bt1.49 million per unit. The company targets sales of 50 per cent of total project value this year, with the rest sold out by next year.
Foo said the company planned to develop other projects next year after selling out D Cube. Meanwhile, the company also is interested in expanding its construction business in Thailand, especially in cooperation with the NHA to develop budget homes. That will start next year.
Prinsiptek Corp is one of the top five property developers in Malaysia and also has a contracting business. Combined project value is about Bt10 billion a year.
Besides Thailand, the group is interested in expanding in other Asean countries such as Myanmar, Laos, Vietnam and Cambodia. It is studying this possibility, he said.
