Thailand based real estate developer Sansiri PCL announced that it would be setting up seven joint venture companies with BTS Group Holdings towards the development plan for new residential projects, over the next 12 months.
Under the Strategic Alliance Framework Agreement, Sansiri and the BTS Group will hold 50 per cent stake each, in all the seven companies. This will be apart from their existing joint venture firms, which are BTS Sansiri Holding One Limited and BTS Sansiri Holding Two Limited.
Each of the joint venture companies will have an initial capital of 100 million baht, divided into one million ordinary shares with a par value of 100 baht each.
Wanchak Buranasiri, chief operating officer of Sansiri, said in a statement that all the new residential development projects would be located within a 500-metre radius of any existing and future rail mass transit stations. The source of fund will come from working capital, he said.
Meanwhile, Sansiri’s president Settha Taweesin said that it would probably raise fund through its debenture issue worth five billion baht, soon, if the market situation has improved and the interest rate is reasonable.
The proceeds will be used to support its investment plans, which according to an earlier announcement will make around 32 billion baht this year. The company expects that its pre-sale will reach 35 billion baht this year and the total sale revenue will surge to 36 billion baht.
Related stories: Siri, BTS to form JV to develop property along Bangkok’s skytrain?