Nusasiri bowed out from project in April
Conner Ratchathewi, a 38-storey condominum with 294 units worth 3.2 billion baht, will be a joint venture between contractor Sangfah Construction Co and developer The Creators HQ Co.
Contractor Sangfah Construction Co plans to launch its first wholly owned development project, Yuu Sriracha condominium, worth 1.7 billion baht in Sri Racha by August after taking over the project from SET-listed developer Nusasiri Plc last month.
Sangfah managing director Cherdsak Ampornsuksakul said the company will revise the layout design and add more facilities to the project, formerly Nusa Sriracha, before the launch.
“After Nusasiri told us it wanted to exit [from the project], we did not hesitate to continue, as the Eastern Economic Corridor initiative will boost Sri Racha’s residential market,” Mr Cherdsak said.
Nusasiri reported to the SET in April that it had sold 50% of Nusa Sriracha Condotel Co, a joint venture with the contractor, to Sangfah for 132 million baht.
Nusasiri said in the filing that the sale was aimed at improving the company’s financial liquidity. Sangfah changed the name of the subsidiary from Nusa Sriracha Condotel Co to SFC Venture Co.
Mr Cherdsak said the acquisition also includes two plots of land measuring 900 square wah each. One of them will be for Yuu Sriracha. The other will be for a future condo project worth more than 2 billion baht if sales at the first one exceed 60%.
A few years ago, Nusasiri launched the project with 280 units and recorded 120 units sold. After the unfinished project was sold to Sangfah, 50-60 units were returned.
Construction of the 28-storey project, now reaching the fourth floor, is scheduled for completion in May 2019.
Mr Cherdsak said the project, with units of 30-60 square metres, will be launched at a price of 130,000 baht per sq m, compared with 90,000 baht during the launch by Nusasiri, as the building is located on a beachfront plot.
A possible city zoning change in Chon Buri may not allow for a high-rise development in Sri Racha, he said.
“Usually, a condo project will guarantee any defect for only one or two years, but we will offer a five-year guarantee for any defect because it’s the first project we’re developing alone,” he said.
Sangfah had previously formed joint ventures with developers when undertaking such projects.
The first one was Aspiration One, an office tower on a leasehold plot in the Ratchathewi area, which was launched in 2015 and is under construction.
The project is a joint venture of Sangfah, SET-listed Sena Development Plc and Aira Property Co, a subsidiary of financial advisory Aira Capital. They hold 15%, 25% and 60% in the project, respectively.
The second project was C Ekkamai, a condominium launched in 2016, for which Sangfah formed a joint venture with The Choice Property Development Co, holding 30% and 70%, respectively.
The third was formerly Nusa Sriracha before Sangfah took over the whole project.
This year, Sangfah is undertaking a new joint venture project, Conner Ratchathewi condominium, worth 3.2 billion baht, with executives from Choice Property Development Co.