Mitsubishi Estate Group, the Japanese real estate developer, says it plans to invest in office developments in Bangkok over the next two years. The company also has a 3-year joint venture to build condo projects worth a combined THB 47 billion with AP Thailand, local media reports.
The office market in Bangkok is attractive since there is strong demand and low vacancy rates, explains Shojiro Kojima, managing director of Mitsubishi Estate Asia. Should the company get into Bangkok’s office market, Mitsubishi would work with a partner other than AP, since the Thailand-based developer only works on residential projects.
“We are interested in new developments rather than acquisitions as we have expertise in office development in our homeland,” says Shokiro in an interview with the Bangkok Post. “Offices are a global product and we have a lot of office buildings in Japan. About 60 per cent of our revenue comes from commercial properties with offices.”
Shojiro also claims that the company could enter Thailand’s retail market, but will only do so if it finds a suitable partner. That’s because retail is not an easy market to enter with shopping malls in the central business district being very competitive at the current time.
“If we choose retail, it may be an outlet mall to avoid the strong competition,” says Shojiro. “Logistics is another area we are studying as it is a rising global trend, driven by the e-commerce market.”
Mitsubishi is also looking to continue investing in condo developments with its partner AP. There are plans in place to launch 2 joint venture projects in the first half of this year with one of them located on Wireless Road. The other condo will be located on Phahon Yothin Road near Central Plaza Ladprao.
AP and Mitsubishi launched 8 projects with a total of 6,500 units worth a combined THB 27 billion between 2014 and 2016, reports the Bangkok Post.
Source: image from www.jeab.com
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