“ORI” Applies Japanese Know-How, “Luxmore,” to Create New Dimension in Living
Nomura’s Joint Venture Aims Long Term Investment in Thai Real Estate
“Origin” discloses about the partnership with “Nomura,” applying “Luxmore,” a know-how from Japan, to create a new dimension in condominium living for consumer. They plan to launch the first 3 projects with a total of over 1,600 units worth a combined 6.1 Billion Baht in a big event, “My Life. My Origin” at Siam Paragon during September 16-17. Nomura, in the meantime, moves ahead an investment plan of ¥300 Billion in overseas within 2025 and hopes the joint venture with Origin will be a long term investment in Thailand to develop both residential and other real estate projects.
Mr. Peerapong Jaroon-ek, Chief Executive Officer of Origin Property Public Company Limited (ORI), the developer of condominium projects under the Kensington, Notting Hill and KnightsBridge brand, revealed that after the company has a joint venture with Nomura Real Estate Development Co., Ltd., Japan’s large developer, through 4 subsidiaries, the company will start applying Nomura’s design, know-how and innovation at the first 3 projects which will be launched in the third quarter this year with Nomura’s significant know-how and innovation under the project, “Luxmore.”
“Luxmore is Nomura’s residential development concept regarding 5 key factors in living which comprise 1) creating a wealthy lifestyle 2) convenient functions 3) multipurpose 4) design and 5) maintenance and cleaning. This concept enables Nomura’s residential projects to create a new dimension in living for Japanese consumers. It is also the key factor that makes Origin feel impressed with Nomura and plan to apply this concept to develop new joint venture projects,” Mr. Peerapong said.
Luxmore is from 2 words: lux and more. ‘Lux’ is luxury and a homonym for “Raku” in Japanese language meaning comfort. The word, ‘Luxmore,’ is aimed to reflect the concept of residential development with more luxury and comfort in an upper level.
Mr. Peerapong added that the 3 joint venture projects, which will be launched in the third quarter this year and considered to apply Luxmore concept, are 1. KnightsBridge Prime—Ratchayothin with 334 units worth 1.6 Billion Baht; 2. KnightsBridge Prime—Onnut with 601 units worth 2.5 Billion Baht; and 3. KnightsBridge Collage—Ramkhamhaeng with 685 units worth over 2 Billion Baht. All together this year will total 1,620 units worth a combined of over 6.1 Billion Baht.
“We will take occasion to launch these 3 projects in our first greatest event under the theme, “My Life. My Origin” at Fashion Hall and Royal Paragon Hall 3, Siam Paragon on the space of more than 2,400 square meter on September 16-17 together with Origin’s 28 projects in locations near the mass transit lines as we are determined to create a new phenomenon and dimension in living for consumer.” said Mr Peerapong.
Royal Paragon Hall 3 will showcase the 3 joint venture projects and Origin’s other 13 existing projects which are during presales or construction period. Meanwhile, Fashion Hall will feature 12 ready-to-move-in projects. In the event, another highlight will be a show from Nadech Kugimiya, Thailand’s superstar and Origin’s presenter, on September 17.
Mr. Eiji Kutsukake, Chairman of Nomura Real Estate Development Co., Ltd., said that the company plans a medium-and long-term growth for the fiscal year 2016-2024 (ended in March 2025) with an overseas investment under the investment budget of ¥300 Billion (around 90.6 Billion Baht), focusing mainly on Asia as the region has a continuing growth in the property sector. Recently, the company decided to have joint ventures with Origin to move ahead an investment in Bangkok, Thailand, and try to utilize its store of know-how in helping to achieve “connect today with tomorrow’s possibilities” in Asia nation.
“We see a stable growth in Bangkok property market in a long term as middle-income earners keep growing. Meanwhile, Bangkok property market is also in a transition period from quantity growth to quality growth. As we have experiences in design, know-how and innovation in quality condominium development in Japan for a long time, we see an opportunity in Thailand and move forward having joint ventures with the developer who has expertise in residential development in the country,” said Mr. Kutsukake.
The reason the company decided to choose Origin as the partner for an investment in Thailand is that Origin is a company founded only 8-9 years ago, yet able to grow exponentially to become a company generating presales of more than 10 Billion Baht per annum. This reflects that Origin is a company understanding property business, locations and consumer needs. It can develop residential projects that respond to Thai consumer’s requirements. Origin also has a vision to expand to be a total solution developer which is in accordance with Nomura’s direction as a total solution developer. This is a good chance for both companies to jointly reinvent property development to meet the needs of consumer in Bangkok and Thailand.
After the joint development in 3 premium condominium projects this year and one next year, the companies plan to co-develop additional residential projects in the future and likely consider a joint development in other property categories in which Nomura has experienced in Japan.
Nomura Real Estate Development Co., Ltd. is one of Japan’s largest developers which was founded in 1957. Currently, its business operations are various comprising: 1) residential development including condominium and single detached house 2) office 3) retail 4) logistics and 5) corporate real estate. As of April 1, 2017, it has a paid-in registered capital of ¥2 Billion (around 600 Million Baht). During its fiscal year ended at March 31, 2017, it recorded ¥401 Billion in revenue from operation (around 120 Billion Baht).
Origin Property Public Company Limited has various businesses including 1) project development business with condominium development of around 38 projects worth a combined over 36 Billion Baht 2) recurring income business including hotels, serviced apartments and retail 3) service business including property management business, property brokerage and property consultancy. The company also eyes to expand to new business consecutively to be a total solution developer.
Credit information from Agate Communications Co., Ltd.