BANGKOK – Sumitomo Forestry Co. is entering into housing development in Thailand through a joint project with a local developer, aiming to capitalize on growing demand for condominiums in Bangkok and to expand its overseas business.

Sumitomo Forestry plans to build a 38-story luxury condo with about 400 units in the capital’s central Thong Lo area with Property Perfect PCL and its affiliate. The investment will total $140 million and construction will begin in the third quarter of 2018, with completion slated for 2020, the company said Wednesday.

With the project, the forestry firm intends to establish a long-term relationship with the leading Thai real estate developer and strengthen its overseas revenue base. It already has housing businesses in the United States and Australia.

The luxury condo will offer units with one to three bedrooms with an average floor space of 50 sq. meters.

Sales will start at the same time as construction begins, according to Sumitomo Forestry.

For the project, its wholly owned unit Sumitomo Forestry (Singapore) Ltd. will establish a special purpose company with Property Perfect and its unit Grande Asset Hotels & Property PCL, with an investment ratio of 49 percent, 11 percent and 40 percent, respectively.

According to Sumitomo Forestry, Property Perfect is a major Thai housing company and has sold over 47,000 detached house and condo units in total. It also owns Kiroro Resort in Hokkaido, becoming the first Thai company to directly invest in the prefecture.

Grande Asset is engaged in the luxury hotel and premium condo development businesses in Thailand.