The Excel Hideaway Sukhumvit 50, worth more than 2 billion baht, will be the first condo project under the joint venture of All Inspire Development and Hoosiers Holdings.

With a sluggish housing market in its home country, Japanese developer Hoosiers Holdings plans to invest US$50 million (1.66 billion baht) in overseas property development, starting with Thailand and a joint venture with All Inspire Development Plc.

Tsutomu Ikuma, chief financial officer of Hoosiers Holdings, said the company is exploring new destinations outside Japan for investment after opportunities on its home turf grew thin.

"This year will be the first time since our establishment in 1994 that we will invest overseas," Mr Ikuma said. "We are set to allocate 5% of our total assets to invest outside Japan from next year onwards."

In May, Hoosiers bought shares in a company that operates in the apartment business in Ho Chi Minh City, an investment worth $20 million, and a firm with a townhouse business in Phnom Penh, a deal worth $2 million.

"Thailand will be the first country that we will invest in property development, followed by the US, where we eye developing a retirement property project, and Australia next," Mr Ikuma said yesterday during a visit to Bangkok to sign the agreement with All Inspire Development.

Hoosiers will invest $5 million in All Inspire-Hoosiers Sukhumvit 50 Co, a joint venture in which All Inspire will hold 51%. The new joint venture will develop The Excel Hideaway Sukhumvit 50, worth 2 billion baht, on Sukhumvit Soi 50.

The low-rise condominium project will have 772 units, 300 of which were sold last Saturday in Bangkok.

The Japanese partner will introduce some of the remaining units in Tokyo in the fourth quarter of the year, said Thanakorn Thanawarith, chief executive of All Inspire Development.

"We are interested in having the Japanese partner join in a retirement housing project," Mr Thanakorn said. "Potential locations are Phuket and Pattaya."

Hoosiers explored Bangkok, Phuket, Pattaya and Chiang Mai and decided Phuket was the most attractive market after Bangkok, while Chiang Mai was rejected because of unattractive property prices and the market's smaller size.

Hoosiers aims to develop projects worth 6 billion baht through the joint venture with All Inspire.

Mr Thanakorn said All Inspire is in talks with a landlord in Chon Buri to buy a plot of 500 rai to develop mixed-use projects on a phase-by-phase basis.

During its 23 years in business, Hoosiers has recorded combined revenue equivalent to 146.6 billion baht and developed 261 projects with more than 20,000 units, mainly in Tokyo and nearby locations.