Nomura Takes on Pair of Condo Projects Near Pattaya in Thai JV

Nomura Real Estate Development is investing in two condo projects in eastern Thailand through a joint venture with local developer Origin Nationwide, according to an announcement this week by the Japanese company.

Nomura has partnered with Origin to develop a pair of condo projects in the Bangsaen area of Chonburi province, the high-rise Origin Play Bangsaen and the low-rise Origin Place Bangsaen.

The two projects in Bangsaen, about one hour’s drive north of the resort city of Pattaya, mark Nomura’s first step into Thailand’s Eastern Economic Corridor (EEC) special economic zone and its 24th development in the country, with at least 20 of those having been undertaken in collaboration with Origin.

“To build trust with partner companies, the group provides added value in the form of know-how cultivated in Japan, going beyond being just a simple provider of funding,” chief operating officer Daisaku Matsuo said in Nomura’s annual report released Monday.

Longtime Partner

The two Chonburi projects are located a five-minute drive from Bangsaen Beach. Origin Play Bangsaen is a 32-storey building with 491 units, while Origin Place Bangsaen is two eight-storey buildings that will offer 429 units.

For both properties, Nomura will take 49 percent ownership and Origin will hold the remaining stake.

In a statement by Origin, the Thai developer said the two properties are positioned to capitalise on growing demand for Bangsaen property, as the area is a popular tourist destination for both Thai and international visitors.

Nomura and Origin have collaborated in developing condo and hotel projects in Thailand since 2017, including building the Staybridge Suites Bangkok Sukhumvit serviced apartment complex, which opened in the country’s capital in August.

With total assets of JPY 2.1 trillion ($14 billion), Nomura plans to invest $3.7 billion overseas by 31 March 2031, aiming for its international business to contribute at least 15 percent of its total profits by the end of that period.

Moving East

As Nomura makes its play in Chonburi province, Bangkok saw a decline in prices for condo units in the capital. According to a CBRE report last week, the off-plan asking price for units was 284,777 baht ($8,153) per square metre during the third quarter, or 11.7 percent lower than in the same period a year ago.

Nomura’s latest project will give the Japanese developer exposure to assets in the EEC, a development initiative from the Thai government that aims to improve the nation’s economic prowess by promoting industrial growth in the three Eastern provinces of Chonburi, Rayong and Chachoengsao.

In a statement released in October 2022, EEC officials said they had secured $50 billion in funding for four public-private partnership infrastructure projects, which would add a rail system and an airport to the region.

Blake Olafson, founder of global private equity firm ACRE, told Mingtiandi that his company has invested in assets in the EEC by backing the real estate platform HOMA, which launched a serviced apartment in Chonburi last April. The 100-room HOMA Si Racha is about a 30-minute drive from Bangsaen. “We really think that the EEC with all the new investment and focus from the government on it will really transform in the coming years,” Olafson said. “We expect more business to follow this trend as the ECC continues to attract more international corporations.”