Origin to build on Thailand’s investment initiative in eastern provinces with residential projects
Government’s plan to invest 1.5tr baht in infrastructure to draw foreign capital
Thailand’s Origin Property is set to develop four new residential projects worth a combined 10 billion baht (US$301.66 million) in the country’s eastern provinces next year, as it seeks to capitalise on the government’s Eastern Economic Corridor initiative.
The SET-listed developer’s chief executive, Peerapong Jaroon-ek, said investment in residential development in EEC provinces has become more attractive after the government vowed to invest 1.5 trillion baht in infrastructure projects in Chon Buri, Rayong and Chachoengsao.
“The government’s spending in EEC will draw overseas investment, which will create residential demand,” he said. “In light of the government’s clear plan, we are seeking new plots to develop next year.”
One of the new projects Origin will launch will be located in the Muang district of Rayong, where it aims to acquire at least 30 rai worth 500 million baht.
The project will comprise condominiums in the lower and medium segments, four-star serviced flats and hotels with retail spaces worth 2.3 billion baht.
Origin started its residential developments in the eastern provinces a few years ago with three projects worth 10.13 billion baht in Sri Racha.
Peerapong said the company and Japanese developer Nomura Real Estate Development are considering investing in logistics development following joint ventures in four condominium projects in Bangkok worth 8.6 billion baht.
“Next week, Nomura will visit Bangkok to see the locations on Bang Na-Trat Road, between Suvarnabhumi airport and Amata Nakorn Industrial Estate, to develop the logistics hub,” he said.
They will invest about 500 million baht to acquire a plot sized between 20 and 50 rai on the road to develop the logistics hub in a tailor-made format for Japanese customers next year.
Origin recently bought two plots totalling 13 rai on Thong Lor Soi 10 from Tan Passakornnatee. It plans to develop a new luxury condominium project worth 11 billion baht on a six rai plot through a joint venture with Nomura.
Opposite the six rai plot, the second seven rai plot is leased to tenants. The lease contract will expire in the next three years.
Pitakphong Santasiri, a private sector representative who works for the government's EEC development plan, said the development plan for the U-Tapao airport will be a key driver for the economy in the eastern provinces.
“One of the industries that are set to develop in the three provinces will be high technology, which needs speed [to be introduced to the market],” he said. “The U-Tapao expansion is being designed to support an aerotropolis to increase the country’s potential.”
He said the airport will cover a total of 6,500 rai and the aerotropolis will cover the surrounding 30 kilometres, to be completed by 2023.
The U-Tapao expansion is part of a plan to promote Thailand as a regional aviation hub. After raising capacity to 15 million passengers in the first phase over five years, the second phase calls for servicing 30 million passengers within a decade. The final stage will handle 60 million passengers after 15 years.
After all expansion plans are completed, the total number of passengers to U-Tapao, Suvarnabhumi and Don Mueang airports will top more than 200 million a year.