Overview
Sena Development, a SET-listed company, has entered into a joint venture with Japanese real estate firm Hankyu Hanshin Properties Corp to focus on future residential developments in Thailand. This collaboration follows a successful seven-year partnership involving 66 projects worth a total of 83 billion baht.
Key Takeaways
- Partnership: Sena Development and Hankyu Hanshin Properties Corp have formed a joint venture.
- Focus: The venture will concentrate on residential projects in Thailand.
- Investment: The partnership has already seen investments totaling 83 billion baht over seven years.
- Market Confidence: Despite current market challenges, both companies are optimistic about future growth.
Long-term Commitment to Thai Market
Masahiko Toda, director of the overseas business headquarters at Hankyu, expressed confidence in the Thai economy and residential market, despite higher living costs affecting home demand. He emphasized that every downturn is followed by an upturn, and the company is committed to long-term investment in Thailand.
Since 2016, Hankyu has invested ¥25 billion (approximately 6.3-6.5 billion baht) in joint ventures with Sena, developing 66 residential projects, including both condominiums and low-rise houses. This investment represents 50% of Hankyu’s total investments in Australia and Southeast Asia, which includes Indonesia, Malaysia, the Philippines, and Thailand.
Strategic Advantages
Kessara Thanyalakpark, managing director at Sena, highlighted the benefits of the joint venture, noting that it makes investments more efficient and flexible. The centralized financial management helps control costs and accelerate operations. Previously, each project required the formation of a new joint venture, resulting in 66 separate firms. The new approach allows for better long-term planning and product development.
Sena HHP Co was founded in August last year with a registered capital of 1 million baht, which increased to 422 million baht after Hankyu’s co-investment in February 2024. Sena holds a 51% stake, while Hankyu holds 49%.
Future Prospects
When the joint venture is not launching new projects, it will focus on product development and adopting new innovations from Hankyu to enhance their offerings. This strategic partnership aims to leverage the strengths of both companies to navigate the challenges of the current housing market and prepare for future growth.
Sources
- Bangkok Post – Sena joins Japanese firm for local venture, Bangkok Post.
