Tokyo Tatemono, Raimon Land in Bt9-bn tie-up

In celebrating their mega venture that gives the Japanese partner exclusivity to all RML’s future projects, both sides expressed upbeat expectations.
Tatemono’s director Katsuhito Ozaw who heads its huge overseas business that stretches from China to US, where it has ties up it has tied up giant Vanke, said his firm will “bring bold designs and concepts never seen before”.
To be sure, Tokyo Tatemono is one of Japan’s oldest real estate company, with origins dating more than 125 years. It employs nearly 5,000 people and its revenue last year was Bt77.8 billion.
Tatemono’s portfolio of super projects in recent years has brought it back to the forefront of global construction.
Katsuhito highlighted Otemachi Forest” and Otemachi Tower both completed in 2014 as among the company’s proudest achievements in Tokyp.
The projects played key parts of an “urban renaissance” programme to revitalize Otemachi financial district. Tatemono recreated an “authentic forest covering 3,600 square metres, regarded as a Herculean effort that took 6 years to complete.
The forest comprised a third of the total commercial site and serving people working and living in Otemachi district.
Within the forest is Otemachi Tower, a 38-storey commercial and retail building that houses Aman Tokyo, considered Japan’s nest luxury hotel today.
Aman Tokyop occupies 6 floors from the 33rd to 38th levels. It is part of the Aman Resort chain that has its roots in Phuket’s Amanpuri and Bali’s Amandara.
Katsuhito said Tatemono’s founders laid foundations for modern Japan, establishing Fuji Bank, now renamed Mizuho Bank. It is housed in the new tower that replaced the demolished Mizuho Bank Building.
The new high rise also sits at a key interchange for 5 subway rail lines.
Meanwhile RML chief executive Adrian Lee said the Tatemono deal will have a 51:49 per cent structure with the Thai side holding the larger portion of the investment.
The first two freehold condominium sites are on Sathorn Soi 12 and mid-Sukhumvit in the Phrom Phong a area.
The agreement also gives Tokyo Tatemono’s Southeast Asian division, exclusive rights to all future RML residential projects.
The partners are “currently looking at 25 potential sites for joint developments”, said a top RML source.
“We have been looking for a partner for two years that share the same culture, synergy and DNA as RML,” said Adrian. “It is fortunate we have located Tatemono.”
He said the companies are sharing considerable technological and commercial knowledge that are mutually beneficial.
At the same time, with Tatemono shared the investment cost will allow RML to diversify into other businesses.
Prime land in Bangkok now sells for between Bt1 million and Bt 3 million per square wah. As such, Adrian said it was important for developers ro have partners in order to compete.
RML’s 6-rai project on Ploenchit Road opposite Central Embassy near the Wireless intersection, however, will for the moment, not involve Tatemono.
But in new projects involving specialized fields such as retirement homes, Adrian said “we will definitely want Tatemomp to join in.”
Adrian added that RML has secured both residential and commercial projects that could “double” market capitalisation about Bt 4 billion presently.
“Our target is to reach Bt10 billion in five years,” he said who began diversification efforts for the company to earn recurring income with new properties such as the Ploenchit site.
Another major achievement was he launched The Lofts Silom with immediate success last year when most projects were struggling.
The Lofts Silom is a 37-storey condo project worth Bt 3.2 billion with 268 units.
 “We were fortunate to achieve 81 per cent sales to date at an average of Bt240,000 a square metre,” he said of the site that can be accessed from Sathorn or Silom roads.
Adrian’s largest undertaking will be the commercial-retail project opposite Central Embassy. The 6-rai site will have a 60-storey tower with 111,500 square metres of built up area.
It will have 61,000 square metres for office rentals and another 5,000 square metres for retail.
Adrian anticipates a revenue of more than Bt 720 million a year, achieving Bt1 billion in revenues within 3-5 years.
RML has secured a 30-year lease with Thaniya, the landowners of Thaniya Plaza. They have a 4-year grace period before the lease period begins, to complete construction and fitting out the premises.
The office structure is currently being built and scheduled for completion in 2020.
 Tokyo Tatemono’s Asean headquarters is in Singapore and it has long been into regional projects in Yangon and Ho Chi Minh City.
Tokyo Tatemono Group’s portfolio also includes real estate consultant service, car parking lots, housing for the elderly, child care service, overseas business and appraiser of real estate value. It has more than 4,800 staff.
Currently it has developed and managed office buildings, condominiums under its Brillia brand. It operates more than 200 commercial sites in Japan.