Thailand: Asean Logistics Foray eyed by Japan’s Mitsui Fudosan
A Japanese property developer by the name of Mitsui Fudosan, is looking to extend its area of expertise to warehouse and logistics development, having already taken the first step in Thailand’s real estate market with a multi-story condominium project.
Akihiko Funaoka, the executive managing officer of the group said that they are keen on investing in logistics in Thailand owing mainly to its favourable location in ASEAN.
He continued to state that besides Thai investments, the firm will explore the opportunities lying in other rapidly growing economies of ASEAN as well.
Mitsui Fudosan has set up their office in Bangkok this March to study the area’s local market for any aspects that may be of interest to them. This office is Mitsui Fudosan’s second one after Singapore some years ago.”
The company, via its regional headquarters at Singapore’s Mitsui Fudosan Asia Pte, has made its way into the Thailand market in the year 2013, having teamed up with SET-listed developer by the name of Ananda Development.
The partners collectively have set up many a joint-venture firm like Mitsui Fudosan Co & Mitsui Fudosan Residential Co.
According to Mr Funaoka, the firm plans to partner with Ananda. On the contrary if for whatever reason Ananda Development is not interested, they will seek out other companies. It is also developing a business in the retail sector as Thai locals love shopping while residential property and serviced apartments for rent are Mitsui Fudosan Co’s interest.
By the end of 2016, Mitsui Fudosan’s joint venture with Ananda Development of 12 projects will have a combined value of around 57 billion THB in sales.
Of this amount, 9 sites worth around 45 billion THB combined were already launched, while the remaining 3 projects worth around 12 billion THB are projected to launch in Q4 of 2016.
This year will see this joint venture generate its first revenue in Thailand with its 6.77 billion THB Ideo Q Chula Samyan project in Q4 of 2016.
It will also generate revenue from 5 other similar joint-venture projects by 2017 that are worth 15 billion THB combined.
Thailand investments are part of Mitsui Fudosan’s budgeted overseas investments worth ¥183 billion.
This overseas budget is destined for eight specific countries that include the US, China, Britain, Taiwan, Malaysia, Singapore, Thailand and Indonesia during the years 2015 to 2017.
Of this amount, 70 to 80% has been marked for Western Nations while the rest is for Asia.
In Britain and the US, the joint venture has invested in condominiums, serviced apartments and office buildings. In China and Malaysia, it has invested in outlets and condominiums. While Singapore has witnessed investments in hotels and condos, with Taiwanese outlets being the last of its Asian investments.
Mitsui Fudosan is definitely not the sole Japanese company that has expanded into Southeast Asia. The likes of Mitsubishi Estate Group, another Japanese investor has been developing residential units in Thailand’s booming real estate market as well. It also boasts of a joint venture with AP Thailand Plc, a SET-listed developer.
Tomohiko Eguchi, the general manager at Mitsubishi Jisho Residence Co Ltd for International Business, stated that the company’s joint venture with AP Thailand Plc has 8 projects worth 24 billion THB combined since 2014.
Keywords/phrases – Mitsui Fudosan, ASEAN, Thailand, Asia.