Thailand: Singha Estate, Hong Kong Land co-invest in second realty development

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Singha Estate Plc, the property development arm of Singha beer producer Boon Rawd Brewery, is inking a second joint venture with Hong Kong Land to develop a luxury low-rise condominium worth 2 billion baht ($61.3 million) in Bangkok’s central business district.

Singha Estate chief financial officer Methee Vinichbutr said this would be one of the two luxury condo projects it planned to launch next year. It plans to develop a high-rise for the other project worth around 5 billion baht.

The first joint venture project between Singha Estate and Hong Kong Land is The Esse Sukhumvit 36, which was launched last month. It is a high-rise condominium worth 6.5 billion baht ($199 million). The partners are targeting pre-sales of 3 billion baht ($92 million) from The Esse Sukhumvit 36 before the end of this year.

Singa Estate estimates total revenues to hit 6 billion baht in 2018, a surge of 50 per cent from 4 billion baht ($122.7 million) this year. Around 60 per cent of the current revenue is generated from residential development projects, 25 per cent from hotels and the rest 15 per cent from commercial properties, including office and retail space.

Singha Estate plans to make its largest international investment to develop luxury hotels and event venues in the Maldives with a total investment of $680 million. Vinichbutr said a plan to acquire a concession from its parent company should be delayed to early next year.

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