Thailand-based holding company Aira Capital PCL (AIRA) plans to diversify into the property development business by setting up a subsidiary “Aira Property,” that hopes to enter into joint ventures with property developers during the second half of this year.
AIRA holds the entire stake in Aira Property, which has a registered capital of 200 million baht ($5.9 million).
“We consider property development to have high potential and it is expected to grow in line with a surging demand for accommodation and the economic upturn. Also, this business will create the sustainable income for us in the long term,” said AIRA’s chief executive Nalinee Ngamsettamas. “Over the next two or three years, we will see more foreign companies investing in property in Thailand.”
Aira Property will focus on developing high-rises that will include condominium and office buildings. It plans to generate income through direct sales or by collecting rental fee for short and long-term contracts.
“However, we will not develop the projects alone. We need a partner who has expertise in property development and we have been talking to several companies. The picture of joint venture or cooperation with the partners will get clearer in the second half of this year,” she said.
AIRA has announced that 75 per cent of its capital will be used for the financial business and the remaining 25 per cent for the non-financial business.