Tan Passakornnatee, Oishi Group managing director, plans several major investments in property and hospitality projects in the coming year.
A condominium projects on Sukhumvit Road worth Bt2.5 billion will be his first investment next year, following an investment of Bt450 million to develop a luxury hotel, Villa Maroc, in Pranburi district of Prachuab Khiri Khan province three years ago. Villa Maroc will have its grand opening on Jan 1.
Tan said he began investing his own money in property three years ago, spending between Bt2 billion and Bt3 billion to collect undeveloped land in Bangkok, Chiang Mai, Lopburi land Pranburi district.
He said that after collecting more land, he plans to developed residences and hospitality projects from next year until 2012.
The first project will be a condominium block worth Bt2.5 billion. Tan is in negotiations with strategic partners to develop this project.
He has also joined with Siam Future Development to develop unused land in Chang Mai as a community mall. Investment will begin next year. Among other plans are the development of land in Lopburi province as a weekend market.
Meanwhile, land owned by Tan on Ploenchit Road, which currently houses a Caltex petrol station, will be developed into a hotel when the petrol station's lease expires in three or four years.
Tan also has 12 rai of land on Soi Thong Lor. Currently it is being used as a soccer field but Tan thinks it has potential for development.
"When we decided to invest in the property business, we saw a business opportunity that was different from the kind that lures others investors, who are often drawn to in stocks or gold, or deposit their money in the bank," he said. While the returns on bank deposits are currently lower than inflation, he said, investment in land makems sense in the long term.
"We aren't concerned solely about high return on investment. Our priorities are that our investments," he said.
When he started to develop Villa Maroc in Pranburi, Tan spent Bt450 million on just 15 rooms. That is not a recipe for a high return on investment. But he believed in taking the long-term view that the more important goal was creating an attractive tourist destination in Pranburi district. "When tourists visit Pranburi, they have to visit Villa Maroc," was the goal.
For his condominium project on Sukhumvit, Than is nekgotiating with a strategic partner.
His future projects will also find require strategic partners, due to Tan's philosophyj that when it comes to business, he does not know everything.
Tan built the Oishi Group, which manages Japanese restaurants and produces and distributes green tea under the Oishi brand, then sold a stake to beverage tycoon Charoen Siriwattanabhakdi. He still holds a stake in Oishi and remains its managing director.
Tuesday, September 22, 2009
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