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SIAM FUTURE: Mall plan for housing projects

BackJan 25, 2007

Developer targets building one or two such centres in '08

Property and shopping-centre developer Siam Future Development hopes to build malls in housing projects, with an initial plan to open one or two such centres next year.

CEO Nopporn Witoonchat said yesterday the company was negotiating with housing developers to open shopping malls in their projects, but declined to name the firms.

He said Siam Future needed between five and seven rai to build a shopping centre. Each centre should include a 5,000-square-metre commercial area, a 200-square-metre supermarket, and an area for parking 200 cars.

Siam Future operates shopping malls in three formats: Esplanade, an urban entertainment centre containing 50,000 square metres of retail space; The Avenue, a large-sized lifestyle centre containing 25,000-square metres of retail space; and J Avenue, a small-sized lifestyle centre with 10,000-square metres of retail space.

All its malls target consumers with high purchasing power.

The malls in the housing projects could be in either The Avenue or J Avenue format. Nopporn said Siam Future would opt for J Avenue if it acquires a small space in an urban area, and The Avenue if it gets a large space in an outskirts area.

He acknowledged it would be quite difficult to reach agreement with housing developers because Siam Future, as a shopping-centre developer, wants to open centres in villages with about 20,000 houses and 50,000 residents. Meanwhile, housing developers usually want to launch projects in very new locations where no homes exist.

The two planned shopping centres in housing projects are part of its overall plan to open four or five centres throughout the whole of next year, which will require an investment of Bt1 billion to Bt2 billion.

This year, it has allocated the same budget to open five shopping centres. Four of them - Ratchayothin, Kaset-Navamin, Mercury Tower in Chidlom and Sukhaphibal 1 - are in Bangkok, the other in Pattaya. The centres will result in Siam Future increasing retail space from 190,000 square metres to 274,000 square metres, a 44-per-cent increase.

Nopporn said Siam Future planned to allocate the same budget each year until 2010 to build four or five shopping centres annually.

He said negative factors such as the economic slowdown, political tension and fear over bomb blasts had not affected SF's business much because its centres focus on products for daily use and entertainment such as restaurants, theatres and karaoke.

Siam Future operates 26 projects - both its own shopping centres and through project management. It expects to have generated Bt1.7 billion in revenue last year, with 23-per-cent growth anticipated this year.

 

Source: The Nation by Nitida Asawanipont
Thursday, January 25, 2007