Kavin Kanjanapas, (left) chief executive of BTS Group and Sansiri's president Srettha Thavisin join a press conference to launch the cooperation. (Photo courtesy of Sansiri)

SET-listed BTS Group Holdings Plc is set to invest 20 billion baht on new plots of land for joint venture development of condo and low-rise residential projects with SET-listed developer Sansiri Plc.

The Line Sukhumvit 71 is the first completed joint-venture condo project between Sansiri Plc and BTS Holding Plc.

BTS chairman Keeree Kanjanapas said plots near mass transit lines are a good investment as the capital gain from increasing land prices is higher than interest offered by banks.

"We raised the budget for land bank investment from 10 billion to 30 billion baht as we recently won bids for the two new mass transit lines which will run to the outskirts of Bangkok," he said.

BTS Group through BSR Joint Venture, a venture with Sino-Thai Engineering and Construction Plc (STEC) and Ratchaburi Electricity Generating Holding Plc (Ratch), recently won bids for the Pink and Yellow Lines.

BTS holds 75% of the consortium, while STEC holds 15% and Ratch owns 10%.

The 34.5-kilometre Pink Line, estimated to cost 53.5 billion baht, will stretch from Nonthaburi's Khae Rai district to Bangkok's Min Buri district, while the 30.4km Yellow Line, valued at 51.9 billion baht, will link Bangkok's Lat Phrao district and Samut Prakan's Samrong district. Both are monorail projects, with construction due to start next year.

Both mass transit lines will be implemented under the public-private partnership model, in which the Mass Rapid Transit Authority, the concession owner, will cover land expropriation costs and BSR will be responsible for civil engineering, mechanical and power systems, train operation, maintenance and fare collection.

"The expansion of the new lines to Bangkok's suburbs will open opportunities for single house and townhouse development. We plan to do low-rise projects in the next 18 months," said Sansiri's president Srettha Thavisin.

BTS and Sansiri inked a joint venture in 2014 to develop residential projects near current and future mass transit lines with a total of 25 sites worth a combined 100 billion baht throughout 2019.

So far BTS-SIRI joint venture has launched eight condo projects under three brands -- The Line, The Monument and The Base -- with a total of 2,963 units worth a combined 30 billion baht, with 70% or 21 billion baht sold.

One of them, The Line Sukhumvit 71 on Sukhumvit Soi 71, has a full quota of foreign buyers, mainly from Hong Kong as BTS is well known in that market.

Mr Keeree said BTS plans to launch a mixed-use project on a 48-rai site on Phahon Yothin Road next year, comprising offices, condos, retail, hotel or serviced apartments. It will be a joint venture with SET-listed developer Grand Canal Land Plc.

"We are in talks with a partner in the retail sector to join the project which will be finalised in February next year," he said. "The BTS-SIRI joint venture can also join this project."

Next year, BTS Group is also committed to investing more in recurring income projects, planning to develop a new office building in Chatuchak district near its headquarters with a construction area of 140,000 square metres, worth 8 billion baht.

BTS shares closed yesterday on the Stock Exchange of Thailand at 8.45 baht, unchanged, in trade worth 69 million baht. SIRI shares closed at 1.63 baht, down two satang, in trade worth 57.2 million baht.