Origin Property Plc, a Thai listed property developer, has sold 49 per cent stake in Origin One Thonglor Co Ltd to Nomura Real Estate Development Co Ltd to develop a new hotel and service apartment in Bangkok.
The deal is sealed at the offering price of 177.12 million baht ($5.45 million) and Origin Property still owns the majority 51 per cent, according to a company’s filing to Stock Exchange of Thailand.
Origin One Thonglor is developing the Staybridge Suites Bangkok Thonglor, one of the first three hotel and service apartment projects that the company launched today. The other two projects are Staybridge Suites Chonburi Sriracha and Holiday Inn Suites Sriracha Laemchabang.
All three hotels worth around 7.5 billion baht aim at serving the high demand for accommodation from Japanese in Bangkok and long-term investors in Eastern Economic Corridor in Chonburi.
Toshihide Tsukasaki, executive officer – Residential Leading & Hotel Management Department, Logistic Property Department of Nomura Real Estate Development Co Ltd, said this is another significant step for Nomura for hotel investment in overseas.
“The main reason we decided to join this investment is that we have a partner like Origin Property who is well rounded in Thailand’s property business. Moreover, we are confident in InterContinental Hotel Group’s quality brands and the project’s strategic location in Thonglor where there is high demand from foreigners,” he said.
Nomura Real Estate Development is a wholly-owned subsidiary of Nomura Real Estate Holding, which earlier announced to set aside the budget of 300 billion yen for its investment in overseas during 2016-2024.
Peerapong Jaroon-ek, chief executive officer of Origin Property, said as Nomura is one of the world’s top three developers, the joint venture will support Origin Property in developing business operation, products and services in various types of real estate development.
Origin Property targets to have about 30-35 development projects in hand with total asset value of 35 billion baht within the next five years and become one of the country’s top three largest developers by 2022.