Singapore company eyes EEC megaproject
SC Capital Partners (SCCP), a Singapore-based real estate and private equity investment firm, has teamed up with a Sri Racha- based developer to launch a high-end condo in Sri Racha worth 3.2 billion baht to tap growing demand from the Eastern Economic Corridor (EEC).
SCCP chairman Suchad Chiaranussati said the EEC megaproject will create a windfall for the property market in the eastern region. Residential demand in Sri Racha is strong for both residential and investment purposes because of the central location.
“Chon Buri is one of the three provinces in the EEC and a main industrial and commercial gateway,” said Mr Suchad. “The number of BoI (Board of Investment) project approvals is on the rise, attracting Japanese investors who employ expatriates from Japan, China and South Korea.”
With strong demand from expats, an investment in a residential unit for rent in Sri Racha is also attractive, with an annual yield of between 6-8% before tax and expenses, far better than that in Bangkok, where investors can only get 4-5% per year.
SCCP last year set up a subsidiary, Goldshine Co, with registered capital of 10 million baht, representing its 12th company investing in Thailand.
Goldshine has a joint venture with Golden Group, a local developer that has been developing low-rise and condo projects in Sri Racha for over two decades.
They will develop Keen Sriracha, a high-end condo project in which they will invest 75% and 25%, respectively.
The 38-storey project will be located on a 3.5-rai site on Sukhumvit Road opposite Robinson Department Store’s Sri Racha branch, comprising 625 units sized 34.7-267.8 square metres and priced between 3-12.7 million baht a unit or 100,000 baht per sq m.
It aims to have 50% of the project sold within six months after launching yesterday. Construction will start in the third quarter this year and be completed in mid-2020.
He said there were a few condo projects in the high-end segment in Sri Racha with a total supply of around 2,000 new and completed units.
Keen Sriracha was the second joint venture project between SCCP and Golden Group. Early last year it launched Suntara Residence, a condo and serviced apartment project worth 1.2 billion baht in Sri Racha. Located near Aeon Mall, the 12-storey Suntara has 152 serviced apartment units with an occupancy rate of 90% and 92 condo units for sale priced 88,000 baht per sq m, 40 of which have been sold.
“Thai property market sentiment slowed after the mourning period while the uncertain policies of US President Donald Trump caused many to freeze their investments,” said Mr Suchad. “But this is a short-term situation. If there is demand in the market, it will pick up sooner or later.”
He said it has been difficult to find an attractive property in Thailand for investment over the past several years. Thai property has been unattractive due to excessive financial liquidity.
During the past two years, the target destinations have been Japan, Australia and South Korea. To date SCCP’s funds total 200 billion baht, having invested mainly in Asia-Pacific.