Bangkok-based Magnolia Quality Development Corporation (MQDC) to set up residential project in NCR "We opened about six months before Covid-19 and now the occupancy is good. And I think it's time to consider expanding," she said
Bangkok-based property development company Magnolia Quality Development Corporation (MQDC) is in talks with multiple landowners to acquire a large plot for a residential project in NCR, Chulamas Jitpatima, country director of the company’s Indian subsidiary, told ET.The developer is also expanding its co-working centres in India, after entering the Indian market with Whizdom Club in Delhi in 2019.
"We opened about six months before Covid-19 and now the occupancy is good. And I think it's time to consider expanding," she said.
The company intends to start its flagship luxury residential real estate project in India and is in talks with property consultants and developers to explore a transaction.
"In Thailand, we developed high-end residential properties and then we had Whizdom Club later, but in India we are doing the reverse, because it's a new market and there is risk and investment involved," said Jitpatima.
When the company entered India in 2019, it planned to open 5–6 centres in three years and had earmarked Bangalore and Mumbai.nBut now MQDC wants to kickstart the property development business first and has scaled down its coworking expansion.
"We have put in a lot of effort into understanding the market and building the teams. These two things are going to be in parallel. I cut down the number of co-working spaces a little bit to speed up the property development," she said.
In the co-working business, MQDC plans to tread cautiously and will keep the size of the centre between 20,000 and 25,000 sq ft.
"We are not going to be expanding as fast as our peers who are hardcore co-working space players. We are a property developer, where we have different directions and different kinds of goals to achieve," said Jitpatima.
The company’s focus in the co-working segment is SMEs, multinationals and mature startups as the space it is developing is premium.
"We have been trying to understand the competitive landscape, regulations, and what has changed since covid. That's done, and we are now here to explore collaborations and partnerships going forward," she said.
For property development, the company is looking for greenfield projects only so that it can develop it as per MQDC’s standard.
On the company’s plan for investment in India, Jitpatima said, "We don't have anything concrete plans yet because I think it depends on the location, the partner and the catchment. But whatever we do, there must be a large residential component, because that's what we do best."
Jitpatima feels that India has a lot of opportunities.
"Things have picked up, mortgage rates are better, residential sales are better. Also, the projects that are coming up are very interesting. Whether it's by the local developers or the international companies that are coming in, we are seeing more diverse products, whether it's amenities, design or the mixed-use component. So, I think this will be a new flavour for the NCR," she said.
Outside of Thailand, the MQDC group sees India as the only country where it wants to do property development.
"India has the direction to focus on flexible space and property development. But if there are other opportunities, such as trading, because, in Thailand, we also grew from our trading business. So, if that opportunity arises for trading in India, of course we'll do it," said Jitpatima.
This story originally appeared on: India Times - Author:Tax Cognition
