Itochu joins Charoen Pokphand Group to build Magnolia Quality Development 39-storey Bangkok tower
28 February 2019
Japanese trading house Itochu Corp and Charoen Pokphand Group will develop a premium condominium tower in central Bangkok targeting the affluent.
For the ¥33-billion (9.39-billion-baht) project, Itochu will build a 39-storey tower comprising 553 units with Magnolia Quality Development Corp, a wholly owned subsidiary of CP Group, according to Itochu.
The Japanese firm and Itochu Property Development Ltd will invest some ¥2.5 billion in the project, an Itochu spokesman in Tokyo told NNA, adding that construction will begin in May for completion in 2021.
A standard unit is a 35-square-metre one-bedroom studio, priced at 10.4 million baht, said Kenji Katsumoto, another Itochu spokesman.
The relatively high price is because of the prime location of the building, which has a river view and easy access to public transport and a large park, Mr Katsumoto said.
Itochu formed a capital alliance with the Thai group in 2014, buying a 25% stake in CP Pokphand Co, a Hong Kong-based holding company running animal feed factories in China and Vietnam.
Many Japanese real estate and railway companies have entered the booming Thai property market in recent years amid rising housing demand in Bangkok from middle- to high-income earners and foreigners.
But tighter mortgage regulations and last December’s rate hike pose challenges to condo developers in 2019, CBRE Thailand Co, a property consulting firm, warned in a report released earlier this month.