Britania launches ‘Joint Venture Landlord’ to drive growth in slow property market

The newly introduced model allows Britania to launch 20 new housing projects nationwide in 2024. Among these, eight will be strategically located in Bangkok and surrounding provinces, while the remaining 12 will be spread across six major provinces, namely Chonburi, Rayong, Nakhon Ratchasima, Ubon Ratchathani, Udon Thani and Khon Kaen. 

At a press conference on Tuesday, Britania’s CEO Theeradej Kerdsamang shed light on the innovative nature of the Joint Venture Landlord model, highlighting its evolution from the previously implemented Joint Venture Partner model. 

Under this framework, rather than solely owning a plot of land and seeking co-investment, Britania collaborates with landowners to enhance the property’s value proposition. 

“This new model benefits Britania as it lowers the cost of investment while maintaining a healthy balance sheet. Furthermore, while landlords earn more from their properties, we [Britania] can boost brand awareness nationwide,” he said. 

Under the Joint Venture Landlord model, Britania holds a majority stake of 51%, with the remaining 49% owned by the land owner. The company shares its expertise in areas such as marketing, management and services, ensuring a collaborative partnership that aligns with the interests of both parties.

Acknowledging the subdued property market, Theeradej noted that it is preferable to expand prudently rather than exponentially, and the Joint Venture Landlord model fits perfectly in the company’s growth strategy. 

“With 20 new projects worth over 17 billion baht to launch this year, 16 are under Joint Venture Landlord deals, while the remainder are 100% owned and developed by Britania,” he said. 

With the housing market for units under 3 million baht still stagnant, Theeradej said the company was shifting its focus to the middle and upper-income demographic with housing prices starting at 6 million baht. 

Currently overseeing 37 active housing projects nationwide, Britania aims to increase this number to 57 by yearend. It expects to generate 13 billion baht in presales and achieve a transfer rate of 8 billion baht within this year. 

As for the broader landscape of Thailand’s real estate sector, Theeradej acknowledged the challenges posed by high interest rates in the first half of the year. However, he expressed optimism regarding gradual recovery in the second half thanks to the improving tourism industry, potential interest rate cuts and additional government stimulus measures.