Mitsubishi Estate Co. Ltd. plans to invest in office development in Bangkok this year or next, following a three-year joint venture with AP (Thailand) PLC in condo projects worth a total of 47 billion Thai baht, the Bangkok Post reported.
Shojiro Kojima, managing director of Mitsubishi Estate Asia Pte Ltd, a subsidiary of Mitsubishi Estate, described Bangkok's office market as attractive, with strong demand and low vacancy rates, according to the report.
After an annual board meeting with AP in Phuket, Kojima said Mitsubishi Estate's preference is for new developments over acquisitions, given the company's expertise in office development in its home country of Japan, the Bangkok Post reported.
Mitsubishi will continue investing in condo development with AP, with around 20 billion baht worth of projects planned annually. According to the report, both companies plan to launch two Bangkok-based joint-venture projects worth a combined 14 billion baht in the first half of 2017.
Mitsubishi Estate is also in talks with partners other than AP, as nonresidential development is not currently in AP's interest, according to the report.
Kojima said Mitsubishi Estate is also studying the logistics sector, where growth continues to be driven by the e-commerce market. He added that while the company is interested in the retail space, shopping malls in the central business district remain "very competitive" and so an outlet mall may be a more suitable investment option.
As of Jan. 26, US$1 is equivalent to 35.32 Thai baht.