TOKYO -- Sumitomo Forestry is planning a second luxury condominium tower in Bangkok, Thailand, partnering with local real estate players on a roughly 30-billion-yen ($271 million) project.
The 60- to 70-story property represents the Japanese homebuilder's intent to deepen its foothold in Southeast Asia as demand at home tapers off.
The tower will be developed and sold through a special-purpose vehicle set up by Sumitomo Forestry, Thai real estate developer Property Perfect and its affiliate, Grande Asset Hotels and Property. Sumitomo will invest about 14.7 billion yen, or 49%, of the cost. The tower's 500 to 600 units are scheduled to be sold starting next April.
The building will sit by the Chao Phraya River, which flows southward through Bangkok, and offer a convenient commute to the throng of major businesses around the Si Lom Road less than 4km away. Sumitomo and its partners will target affluent employees at nearby businesses as buyers.
Upscale hotels and large shopping malls are slated for development in the surrounding area. The tower's grounds will include lots of greenery and other features intended to distinguish the development from other luxury properties. Common spaces, including a cafe, a pool and a gym, are under consideration.
Sumitomo Forestry began developing its first luxury condo in Bangkok in October. Its 310 units will go up for sale this fall.
The company has been building up its Southeast Asian housing operations since last year. It is also launching housing and real estate businesses in Vietnam and Indonesia, where it has production hubs for materials. Sumitomo Forestry is also considering building single-family homes in Thailand -- one of its core businesses at home in Japan, where factors including a shrinking population are expected to erode demand.