Japan’s Shinwa Group kicks off Asean expansion push in Thailand
JAPANESE property firm Shinwa Group plans to expand its investment in Asean between now and 2019, targeting revenue from overseas sales to reach Bt10 billion by that year.
The group launched its foray into the Asean market last year, announcing its first investment in Thailand, Shinwa Group director Tomoyasu Yamabe told a news conference yesterday at the company’s headquarters in Osaka.
Other countries in Asean where it plans to develop condominium projects are the Philippines, Vietnam, Malaysia, Indonesia and Singapore.
“The Philippines and Vietnam are the next two priorities for our investment expansion in 2018 after launching our first condominium project, Runesu Thonglor 5, worth Bt1.2 billion in Thailand early this year,” he said.
The group is also negotiating investments in the United States and Europe, with deals to be finalised this year.
All of its overseas investments will be through joint ventures with local partners, as it did in Thailand, he said.
Runesu Thonglor 5 will be an eight-storey condominium with 156 units. Construction will start in the third quarter of this year and will be complete in the fourth quarter of 2018.
It will open for presales in the second quarter of this year with prices starting at Bt4.9 million.
In Thailand, the company plans to launch its next two condominium projects worth a total of Bt2.4 billion in 2018 and 2019. They are expected to generate income of Bt3.6 billion for W-Shinwa Co, a joint venture between Shinwa Group and Woraluk Property Co, by 2019.
Yamabe said the group planned for its overseas investments to contribute up to 18 per cent of its total sales target of Bt20 billion in 2019.
Most of that will come from its investments in Thailand.
Its investments in other Asean countries will begin generating revenue in 2020, he said.
He added that Shinwa Group decided to expand overseas after enjoying success in Japan, where it generated total sales revenue of 35 billion yen (Bt10.7 billion) last year.
Yamabe said the group’s condominium ventures would serve as pilot projects for a more ambitious overseas expansion in the future.
After about three years, it plans to get into such businesses as hotels, property management, spas and automatic car-parking systems outside Japan.
Yamabe, who is also co-chief executive of W-Shinwa Co, said its first condominium project in Thailand, Runesu Thonglor 5, used technology to make it attractive both to Thais and to Japanese people who live in Thailand.
The project is located close to Bangkok’s mass-transit system, which will make it attractive to customers looking for an investment property and those who want to live in the projectWichai Chula-Olarnkun, Co-CEO of W-Shinwa Co Ltd, said that not only the building, the project will offer the project management and innovative to serve with the customers demand for long term.
