“Origin Property” Launches “Big Move” to Joint Venture with Japanese Real Estate Giant “Nomura Real Estate Development” Initiating the sale of 49% shares in 4 subsidiaries to Nomura, aiming to develop condominiums in various locations, hoping to exchange know-how for strong and sustainable growth. The plan and target for 2017 have been adjusted to launch 12 projects worth 18.05 billion baht, increasing the revenue target to 9 billion baht.

          Mr. Pirapong Jaroonaek, CEO of Origin Property Public Company Limited (ORI) is the developer of condominium projects under the Kensington, Notting Hill, and Knightsbridge brands. He stated that the company is currently moving forward with a joint venture with Nomura Real Estate Development Co., Ltd., a major real estate company in Japan, to jointly develop condominium projects. Recently, the company's board meeting on July 29, 2017, approved the sale of common shares of 4 subsidiaries, approximately 49% each, to Nomura Real Estate Development Co., Ltd.

1. Origin Sphere Co., Ltd. will sell 49,000 common shares with a par value of 10 baht per share, which is 49% of the total common shares, equating to a registered capital of 0.49 million baht, with a total sale price of 32.81 million baht.
2. Origin Vertical Co., Ltd. will sell 49,000 common shares with a par value of 10 baht per share, which is 49% of the total common shares, equating to a registered capital of 0.49 million baht, with a total sale price of 44.22 million baht.

3. Origin Ramkhamhaeng Co., Ltd. will sell common shares after increasing the registered capital to 476.53 million baht, totaling 23.34997 million shares with a par value of 10 baht per share, which is 49% of the total common shares, equating to a registered capital of 233.4997 million baht, with a total sale price of 311.39 million baht, and

4. Origin Prime 2 Co., Ltd. will sell common shares after increasing the registered capital to 589.7 million baht, totaling 28.8953 million shares with a par value of 10 baht per share, which is 49% of the total common shares, equating to a registered capital of 288.953 million baht, with a total sale price of 400.54 million baht. The company currently holds 100% of the shares in all 4 companies, and upon completion, the company will hold approximately 51% in each company, while Nomura Real Estate Development Co., Ltd. will hold approximately 49% in each company. “The joint venture through subsidiaries will enable Origin Property and Nomura Real Estate Development to collaborate on developing new condominium projects in various locations where Origin already has land ready for development,” Mr. Pirapong stated.

          Mr. Pirapong further stated that this joint venture will provide Origin with opportunities to exchange knowledge on know-how, innovation, and design in developing Japanese-style condominiums, which will be a crucial foundation for the company to move forward stronger and more sustainably.

          Nomura Real Estate Development Co., Ltd. is a major real estate company in Japan, established in 1960. It currently has a diverse business structure, including 1. Residential development business, both condominiums and single-family homes, 2. Office leasing business, 3. Retail business, 4. Logistics business, and 5. Real estate-related services such as sales, purchases, and leasing. It has a registered capital of 2 billion yen (approximately 600 million baht) as of April 1, 2017, with operational revenue in the latest fiscal year (April 1, 2016 - March 31, 2017) amounting to 401 billion yen (approximately 120 billion baht).

          Mr. Pirapong added that the company has also adjusted its plans and performance targets for 2017, increasing the number of new project launches from 9 projects worth 15 billion baht to 12 projects worth 18.05 billion baht, including 11 condominium projects and the first single-family home project of Origin. There will be 8 new projects launched in the second half of the year. Additionally, the sales target has been raised from 13 billion baht to 14 billion baht, and the revenue target has been increased from 6 billion baht to 9 billion baht, along with an updated backlog status at the end of the first half at 25.285 billion baht.

 

          “We currently have strong partners in our business operations, both from our collaboration with Proud Residence Co., Ltd. and the joint venture with Nomura Real Estate Development Co., Ltd. At the same time, the real estate market is expected to improve in the second half of the year, giving us confidence in the growth opportunities to the next level and deciding to adjust our new project launch plans and performance targets for this year,” Mr. Pirapong stated.

          Origin Property Public Company Limited has a diverse business structure, including 1. Residential development for sale (Project Development Business), having developed approximately 38 projects with a total project value of over 36 billion baht, 2. Recurring income business (Recurring Income Business) such as hotels, serviced apartments, retail, 3. Service business (Service Business) such as property management, real estate agency, and consulting services, and continues to have a vision to expand into new business types to become a comprehensive real estate operator.

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