BTS, Sansiri in JV for home projects along train routes

BTS Group and Sansiri signed the deal yesterday to set up a 50:50 joint-venture company with registered capital of Bt100 million for the development of new condominiums near the BTS Skytrain routes. Keeree Kanjanapas, chairman of BTS Group Holdings, said the two firms would combine their resources and abilities for maximum mutual benefit and return.

“The BTS Group brings to the table strong financial standing with cash flow of Bt30 billion to support further investment in mass-transit projects, as well as highly experienced and professional human resources,” he said. 

“Growth in revenue from the BTS Skytrain in the 2014-15 fiscal year is expected to be 12-15 per cent, and combining BTS Group’s land bank of prime city locations with Sansiri’s proven expertise in developing residential projects along both existing and future mass-transit lines creates the ideal synergy for successful collaboration.” 

Sansiri president Srettha Thavisin said the joint venture could capitalise on the Rabbit card database to design projects that fit well with customers’ needs, as the database would enable the company to gain insight into customer behaviour.

The first project for this strategic partnership will be a condominium near the BTS Mo Chit Station. It will feature 900 units worth almost B6 billion and is scheduled to be launched in the first quarter of next year.

The two partners have earmarked initial budgets of about Bt5 billion each for project development, of which Bt600 million from each will be spent on the first project. 

The joint venture also has planned projects in the pipeline worth almost Bt30 billion for the next three years. It is expected to launch two or three developments next year, which might be detached-house projects or condominiums. The targeted minimum sales value of each project is Bt3 billion.

This is the second move by BTS Group into the property business. Two subsidiary firms – BTS Asset Co and Karm Kung Property Co – have conducted a share swap with Natural Park. When the deal is complete, BTS Group Holding will hold 37.06 per cent of Natural Park, the company reported to the Stock Exchange of Thailand.

Meanwhile, as of March 30, Keeree, which held a 0.97-per-cent stake in Sansiri, does not figure among the major shareholders of Sansiri as of October 10.