TOKYO : The SET-listed Ananda Development Plc (ANAN) is counting on its tie-up with Mitsui Fudosan Co, a major property developer under Japan's Mitsui Group, to help strengthen its leadership in condominiums along Bangkok's mass transit routes.
The company expects to learn from its Japanese counterpart's experience in Tokyo, site of one of the fast-growing railway networks in the world.
Ananda and Mitsui Fudosan last Friday signed an agreement to set up Ananda MF Asia Co, with initial capital of 1.8 billion baht.
Ananda MF Asia will develop at least two real estate projects a year worth a combined 10 billion baht.
Mitsui Fudosan and Ananda each own 49% of the joint venture and individual investors the rest.
Apart from Thailand, Mitsui Fudosan is expanding into China, Taiwan, Malaysia and Indonesia after entering Singapore 40 years ago.
"Bangkok has high growth potential, especially for real estate along mass transit routes, which is one of our core businesses," said Kiyotaka Fujibayashi, Mitsui Fudosan's chairman and chief executive.
Mitsui Group said it chose Ananda because both share the same business model and focus as well as the same motto _ "Live, work, play".
Ananda chief executive Chanond Ruangkritya said the partnership will lift project quality, as the new company will adopt Total Quality Management (TQM) standards.
TQM is an integrative philosophy of management for continuously improving the quality of products and processes.
The principle works horizontally across a project or organisation, involving all departments and staff as well as suppliers and clients.
Ananda MF Asia has bought a five-rai plot next to a mass transit line in the Rama IV Road area, 270 metres from Sam Yan subway station, on which to develop Ideo Q Rama 4.
With 1,602-units and 40 storeys, the 6.5-billion-baht project will be completed in 2016.
Tomoo Nakamura, the executive director of Mitsui Fudosan (Asia) Pte in Singapore, said most people want to live near convenient access to transportation if not in the city centre itself.
Tokyo has the highest passenger numbers per station in the world, he said.
Shinjuku station sees 3.18 million passengers a day, Tokyo station 920,000 and Shinagawa station 896,000.
The Japanese capital has 1,266 mass transit stations.
Shares of ANAN closed yesterday on the Stock Exchange of Thailand at 1.63 baht, down four satang, in trade worth 44.7 million baht.
About the author
- Writer: Darana Chudasri
Position: Business Reporter