Joint Venture Models of Real Estate Companies Listed on the Stock Exchange of Thailand: Case Studies of Sansiri Public Company Limited and Origin Property Public Company Limited

Abstract

Joint ventures are a key strategic approach used by real estate development companies to manage risks and enhance competitiveness. This study examines the joint venture practices of Sansiri PCL and Origin Property PCL during 2020–2024. Data were collected from the companies’ 56-1 One Report disclosures and in-depth interviews with executives, and a comparative analysis was conducted on joint venture policies, structures, key decision-making factors, and the advantages and limitations of such collaborations.

The findings reveal that: 1) Joint venture policy: Sansiri adopts a selective partnership approach by collaborating with specialized partners to enhance project quality and corporate image, whereas Origin utilizes joint ventures as a proactive strategy for business expansion, with an average joint venture activity of approximately 70% per year. 2) Joint venture structure: Both companies typically hold equity stakes of approximately 50–51%. Most joint ventures are formed with domestic partners, while international collaborations are mainly with Japanese firms, focusing primarily on condominium development, followed by housing projects. 3) Key decision-making factors: The most critical factors include trust, transparency, and good corporate governance, followed by equity structure and alignment of strategic objectives. Sansiri emphasizes governance and control, while Origin prioritizes knowledge transfer, technological exchange, and international expansion. 4) Advantages and limitations: Joint ventures reduce investment burdens, share risks, and improve access to partners’ resources. However, challenges such as management complexity, cultural differences, and decision-making conflicts may affect long-term project performance.