Thailand’s Magnolia Development plans to provide property design service in China

Construction News
Visit Malaisirirat, chief executive officer of Magnolia Quality Development Corporation.
Visit Malaisirirat, chief executive officer of Magnolia Quality Development Corporation.

MAGNOLIA Quality Development Corporation plans to take its real-estate design arm for both commercial and residential projects to China.

“China is a huge market with a population of about 1.4 billion, 20 times as big as Thailand. Such a huge market holds great potential for the real-estate industry,” chief executive officer Visit Malaisirirat said yesterday.

The company will set up a joint venture to provide the design services in China next year, he said.

“We have strong experience in China from operating our wholly owned subsidiary in the country to provide construction management services for more than 10 years. We have a customer base as well as good connections with local real-estate developers in China. That will allow us to expand into China quite easily,” he said.

“We’re also interested in developing property projects in China in the future, both commercial and residential. However, the company has no concrete plan for the expansion,” he said.

In China, land is owned by the government. It casually opens bidding for certain plots to private companies that want to develop real-estate projects. Foreigners who want to develop real-estate projects need to form a partnership with those private companies that win the bids, he said.

Magnolia is also looking at other highly populated markets, such as Indonesia, where the real-estate market is not yet fully developed.

For Thailand, Magnolia has set a three-to-five-year plan to focus on the development of both mixed-use and single-use projects at prime locations in Bangkok and other major cities.

“We will launch one mixed-use project, worth more than Bt30 billion, next year at a prime location near Bangkok. The project will contain both commercial and residential buildings, which will allow the company to earn both long- and short-term revenues,” Visit said.

The company will also develop a condominium in the Hua Lamphong area by the end of this year or early next year. The project is now being designed.

“We plan to develop five to 10 single-use real-estate projects domestically within three to five years. Each project will require an investment of Bt2 billion to Bt3 billion,” he said.

Magnolia is developing about 12 projects worth Bt68 billion, including the Whizdom 101 mixed-use project on Sukhumvit 101 and Whizdom Station Ratchada-Thapra.

It recently launched the latest instalment of its corporate-social-responsibility contest called “‘iCare by MQDC” with the winners to be annouced in May next year.

The CSR business-plan contest will allow high-school and university students and the public to join forces and bring their fresh ideas to the table. ICARE Awards will provide them the chance to develop their ideas into tangible projects.

ICARE Awards have been offered since 2008.

Magnolia says it wants to show its strong commitment to society and the environment. That was how the company came up with this contest aimed at encouraging young people to be more responsible and make them feel obligated to think about others, the environment and society.

They can also build a business that will grow sustainably with the society they are in.