The 300-rai project on Bang Na-Trat Road was unveiled to the market early this year and construction is now underway with completion scheduled for 2022.

The project will have 40 per cent forest cover while all residential buildings, shops, offices, healthcare centre, innovation hub, forest pavilion, and community learning area will feature green innovations and technology developed by RISC and its research partners, Singh said.

“It is unique in Thailand to commit to the use of plastic waste in real estate developments with the first use of more than 160 tonnes of upcycle plastic waste from the sea to build 5 kilometres of footpaths, road curbs and landscape elements. The goal of this project is to be a prototype for green architecture and urbanism in the country,” Singh said.

RISC shares its innovative, green technology in the development of the pilot project.

“We collaborated with the Harvard TH Chan School of Public Health to ensure a sustainable environment of health and well-being for the Forestias project,” Singh said.

“An RISC team observed and studied the ecosystem in and around the site, identifying more than 38 types of trees/plants and 123 animal species in a natural, eco-balanced setting. The project’s forest areas come in four levels – Deep Forest, Resident Forest, Forest Centre, and Forest Pavilion – all designed to facilitate the public to experience nature,” he added.

To avoid emission of environmentally harmful hydrofluorocarbon from air-conditioners, a water cooling system will run through all buildings on the site. It is also a cost-saving measure.

“The system will maintain the temperatures inside the buildings. It does not produce pollutants, thus minimising the green house effect,” he said.

The project also strives for a sense of warmth between all members of a family. For example, there will be an area where grandparents can play with their grandchildren and familiarise themselves with new technology, while the new generation can learn about the past.

“All construction materials meet slippery standards for the safety of the elderly,” he said.

Outings of natural exploration and camping trips will be organised to broaden the activities of families and their friends. There are areas specially designed for various kinds of outdoor adventures, he said.

The project also aims to achieve a harmonious coexistence between nature and innovative technology to ensure their mutual sustainability with the use of clean energy, renewables and pollution-free materials.

The convenience of new technologies has led to changes in lifestyle with many of the younger generation opting to stay with their families for a sense of closeness. Through research and development, architects will be able to design world-standard buildings that would improve the quality of living, he said.

Given its green and innovative approach, the project will apply for Leadership in Energy and Environmental Design (LEED) certification and WELL standard from the US Green Building Council, a certification for well-being standard from the International Well Building Institute from USA, as well as a rating on Energy and Environmental Sustainability or TREES by the Thai Green Building Institute.

Forestias is a collaboration between MQDC and its global partners, including Foster and Partners, on architectural master plan consultancy; EEC Engineering Network on building system development based on MQDC’s concepts; Atelier Ten on sustainability systems; ITEC Entertainment on experience and leisure; Six Senses on hospitality and residential management, and Harvard TH Chan School of Public Health on healthy living and well-being as well as MIT Energy Initiative on future materials.

MQDC’s chief executive Visit Malaisirirat said the world is dealing with a deteriorating natural ecosystem, broken families and an ageing society, leading to feelings of isolation and depression. He said MQDC aims to develop real estate projects that offer sustainable, happy living through eco-friendly design, modern innovation and technology.

Singh, who is also head of Kasetsart University’s Creative Centre for Eco-design, said that the trend in designing commercial and residential buildings has now shifted from minimising construction costs to generate high value to investing in something friendlier for the environment and creating well-being for the residents.

“This heralds a new era for property developers and architects,” he concluded.

Forestias is a first in the property sector, highlighting the benefits in the development of a green, mixed-use project that can also generate incomes.

“We are looking for more ways to maintain well-being and sustainability while reducing operation and maintenance costs,” Singh said.

In a recent interview, Sansiri Plc’s chief operating officer Uthai Uthaisangsuk said: “We have obtained LEED (Leadership in Energy and Environmental Design) certification from The US Green Building Council for the company’s 98 Wireless condominium project, developed as a green architecture.”

It was the first residential project in Thailand to have been awarded the certification, followed by Park Venture, Energy Complex, Kasikorn Bank Learning Centre, among others.

Associate Professor Dr Singh Intrachooto, head of Kasetsart University’s Creative Centre for Ecodesign and Scrap Lab , said public’s concerns about the environment have led to a shift of focus in design and higher standards among property developers in order to obtain certifications for LEED and TREES ( Thai Rating of Energy and Environmental Sustainability) from the Thai Green building Institute. The Thai institute was established by the Engineering Institute of Thailand and the Association of Siamese Architects under the Royal Patronage.

The TREES website shows 98 building have applied for its certification with 35 having been certified under the silver, gold and platinum categories. Criteria for the certification covers a projects’ design,construction process as well as energy sources.

In line with the trend, a certification for well-being was initiated by the US’ International WELL Building Institute in 2017, with an emphasis on the wellness of people residing in a building, in terms of air and water qualities, lightings, fitness, ease of mind and convenience through innovations.

Since 2017, 929 projects in 34 countries with a total space of over 175 million square metres have applied for WELL certification, as stated on WellCertified.com.

Given the concerns with environment and wellness, all parties involved in a property project – architects, interior designers and developers, have entered into a new era.

Singh said equal importance must be given to green and well-being designs in the development of a project to ensure the quality of living of its residents.

To achieve wellness, an interior designer should observe people’s behaviours, research and develop green and non-toxic construction materials for the safety of all residents in a building, regardless of their ages.

“Wellness is not easy to achieve, but is the way to improve the quality of living ,” he said.

Dr Sopon Pornchokchai, president of the agency, said a survey of newly launched housing projects in the Bangkok Metropolitan Region (BMR) reported 174 projects were found with 43,703 homes costing Bt173 billion in total.

The average price was around US$127,705, approximately 35 per cent of the average price.

“However, if the six-month figures were doubled, it was found that the total number of projects, apartments and value of 2018 would be minus 15 per cent, minus 24 per cent and minus 22 per cent of those in 2017, respectively,” he said.

“This implies the sharp shrinkage of the economy of Thailand despite the effort of the government, which said the economy was growing.

“It was estimated that the figure in the first half of 2018 would be around 10-per-cent higher. In a quarterly survey, we always found more projects which were not reported in a monthly survey. In addition, it was forecast that in the second half of 2018, the situation could be 20-per-cent better than the performance in the first half,” Sophon added.

The company’s assistant executive vice president/condominium project Piti Jarukamjorn said that all three projects are in the central business district and close to the mass transit system. They will open for bookings from August 3 to 5, 2018 at Parc Paragon, Siam Paragon.

Meanwhile, Sena Hankyu, a joint venture firm between Sena Development Plc and Japanese firm Hunkyu Realty Group, has presented its latest condominium project, Piti Ekkamai. Costing Bt5 billion, unit prices will start at Bt4.45 million, , according to the the company’s press release yesterday.

The offer for the shares in MK will be made at Bt4.10 each, the statement said.

“We decided to make a voluntary tender offer in MK when we saw an opportunity to expand the business in the property sector, especially in the segment for warehouses and golf courses, which are owned by MK,” Supalai chief executive officer Prateep Tangmatitham said yesterday.

“This will help generate recurring income for the business, as we also need a strategic partner to do business with when the market is facing high competition.

“We do not need to take over the business; we only need a partner to drive our business growth.”

As of May 30, Prateep holds an 11.29 per cent stake in MK Real Estate Development Plc, followed by Finansa Plc with 9.78 per cent, and CPD Holdings Co Ltd with 9.07 per cent, according to the reported information on the SET.

According to Supalai’s statement to the SET yesterday, SPM, which is held 99.99 per cent by Supalai Plc, will make the offer for the MK shares on the condition that SPM shall cancel the tender offer if – after the expiry of the offer period – the offeree’s tender shares of MK come to less than 25 per cent of the total issued and paid-up shares of MK. Moreover, the tender offer will not be used for the purpose of delisting the stock.

The transaction size of the voluntary tender offer for all securities in MK (assuming that all shareholders of MK accept the offer) is equivalent to 22.29 per cent, which is deemed as a Class 2 Transaction under exchange regulations – as defined by a transaction whose size is 15 per cent or higher but is less than 50 per cent. The calculation is based on the total value of net tangible asset criterion, which gives the highest transaction value, pursuant to the Acquisition and Disposition of Assets Notifications. However, the company and SPM made no asset acquisitions transactions over the past six months.

Yesterday, MK Real Estate Development Plc reported to the SET that the company had been informed via the Electronic Company Information Disclosure channel of SPM’s offer.

MK Real Estate Development Plc had been owned by Chuan Tangmatitham, who is an older brother of Prateep. Chuan decided to sell a 20.64 per cent stake in the company to Finansa Plc and the Suthep Wongvorazathe group in 2015. The transaction was made at Bt6.75 per share in a Bt1.2 billion deal. Chuan now holds a 0.93 per cent stake and his daughter Chutima Tangmatitham has 1.59 per cent.

MK Real Estate Development Plc announced total revenue of Bt3.26 billion and net profit Bt233.25 million for 2017. For the first quarter of this year, it posted total revenue of Bt1.27 billion and net profit of Bt44.48 million. Its share price closed at Bt4.08 yesterday, up Bt0.78 from Tuesday.

Supalai Plc announced total revenue Bt25.78 billion and net profit Bt5.8 billion for last year. In the first three months of this year, it booked total revenue of Bt4.65 billion and net profit of Bt870.08 million. The company shares yesterday closed at Bt24.50 each, dropping Bt1 from Tuesday’s trading.

Land prices rose dramatically during the Asian Tiger boom years from 1988-1996 before the market came to a grinding halt in the 1997 financial crisis.

Land price growth resumed in the early 2000s and there has been a rapid escalation of prices over the past two years for prime sites.

Two landmark transactions in the late 1980s were the acquisition of an 8-rai (3.2-acre) site on Sathorn by the original developer of Empire Tower for around Bt125,000 per square wah (4 square metres) and the acquisition of a 8.5-acre site on Wireless Road, which was then the Standard Chartered Bank manager’s house, by the M Thai Group for around Bt250,000 per square wah which is now All Seasons Place.

The latest sale in Sathorn was the 8-rai site of the Australian Embassy for Bt1.45 million per square wah in 2017. In Lumpini, SC Asset paid Bt3.1 million per square wah for an 880-square-wah site on Soi Lang Suan.

The largest land sale in terms of value was the sale of the 23-rai British Embassy site this year to the Central Group/Hongkong Land joint venture.

The growth in new supply of commercial and retail space in Thailand over the next few years will increase competition in the retail real-estate sector and developers’ funding needs, said Nichaya Seamanontaprinya of Fitch’s corporate ratings team.

Bond issuance by the commercial-property sector has been low, with outstanding bonds of about Bt40 billion, or 1 per cent of the total, in June.

Fitch expects debt funding, including bond issuance, from commercial developers to increase in the medium term due to several large mixed-use projects in the pipeline. This could result in higher leverage and oversupply if economic growth weakens.

Guest speaker Yingyong Nilasena of the Government Pension Fund highlighted the benefits of investing in commercial real estate through property funds and REITs as they tend to have more stable cash flows, low entry costs for smaller investments and ease of asset and geographical diversification.

The business needs substantial scale to diversify sufficiently and requires significant management expertise, he added.

Investors should start by developing a model portfolio, followed by individual fund selection, Yingyong said.

The approval was given on condition that SPM shall cancel the tender offer if, on expiry of the voluntary tender period, the offerees have tendered less than 25 per cent of the total issued and paid-up shares of MK. The tender offer is not for delisting purpose, according to the company report to the Stock Exchange of Thailand on Wednesday.