PUBLISHED : 12 Oct 2024 at 06:10
Damac Group, a leading property developer from the UAE, is set to embark on a branded residence project in Bangkok through a strategic partnership with a local developer following its impressive US$1 billion investment in data centers this year.
The founder of Damac Group announced that investment in residential projects is slated to commence next year, focusing on luxury branded residences that align with the company’s upscale development portfolio.
“While we have not established a specific investment budget for residential development in Thailand, our enthusiasm remains strong,” he noted during a recent visit to Bangkok, highlighting the $1 billion allocation for data centers as the group’s entry into Southeast Asia.
According to property consultancy CBRE Thailand, branded residence projects in Bangkok priced at over 350,000 baht per square metre are performing exceptionally well, boasting a 90% sales rate in the first half of 2024.
The latest addition to the market is the Porsche Design Tower Bangkok, valued at 15 billion baht, located on Sukhumvit Soi 38, which was launched by Ananda Development Plc in August and is currently seeking a co-investor.
In a significant partnership, Damac Group recently signed a collaboration agreement with Proen Corp, a prominent ICT and data center provider. This partnership will see both companies co-investing in Seashore Data Center and Cloud Services Co, with Damac securing a 70% stake and Proen obtaining 30%.
The first data center targeted for investment by this joint venture is Proen OTT DC, a well-structured five-storey facility encompassing 10,000 sq m on a 3.43-rai plot located in the Suan Luang area.
Reports indicate that Proen plans to sell this property to Seashore for approximately 833.2 million baht, which includes data center equipment valued at 464.2 million baht and land and building assets worth 369 million baht.
Following its rebranding to Edgnex Data Centers, the initial phase aims for 5 megawatts of capacity with a total investment of 1.7 billion baht, translating to 350 million baht per megawatt, according to the chief executive of Proen.
“We anticipate revenue from the first phase to materialize by the end of this year,” he stated.
The subsequent phase, featuring an additional 15 megawatts at the same site, is projected to commence in February 2025.
Seashore’s ambitious plans aim for a cumulative capacity of 100 megawatts within a few years, with allocations of 20 megawatts designated for each location, including Navanakorn in Pathum Thani, Bang Na, and Sri Racha in Chon Buri, where Proen holds significant land assets.
