B220m Phuket mall planned

Construction News

New project from Jatujak Green group
High Traffic Media Co, the operator of Jatujak Green mall, will co-invest with a Scandinavian private fund to develop a 220-million-baht community mall in Phuket by the end of the year.

Managing director Sakda Oudarasak said the Phuket community mall would be the second commercial venture with the Scandinavian offshore fund following Jatujak Green.

They will spend 120 million baht to acquire an eight-rai site near Ao Makham on the route to Sri Panwa Hotel, while construction costs will be around 100 million baht. The joint venture will be 51% held by the Thai firm and 49% by the Scandinavian partner.

“We will start development by year-end and complete it before the Asean Economic Community takes place in 2015,” he said.

Both malls are expected to generate an 18-20% return on investment.

The 100-million-baht Jatujak Green is projected to break even after three years. It will open on July 27, and 90% of the space is booked. The mall is located on a 21-rai site near the Children’s Museum of Bangkok behind the Chatuchak Weekend Market.

Yesterday, the company signed a memorandum of understanding with Guangdong Hong Kong Economic & Trade Information Exchange Association to establish a hub linking Thai and Chinese trade in Jatujak Green.

It will reserve 15 shops out of the 148 in Jatujak Green to provide space for the association’s members. The conditions include a 20% collection of gross profit as rent during the two-year contract.

The association will help Thai small businesses tap the Chinese market because this requires a customised strategy, he said.

The company will try to limit speculation from brokers or middle men wishing to book several shops and re-rent them at higher prices. Booking will be limited to three shops for one tenant and the shops must not be located separately.

Rents will be 20,000 baht for a corner shop and 18,000 baht for others. Each shop is sized around 14 square metres. It will collect 10,000 baht a month in advance, depending on how many months the tenant rents.

For example, if the tenant rents the shop for one year, 120,000 baht will be required on the contract signing date. Then 8,000 or 10,000 baht will be paid monthly.

Tenants must submit their documents or show their products and factories.

“They must also show us a 3D shop design, which costs up to 15,000 baht. Brokers won’t invest at this point,” he added.

Source: http://www.bangkokpost.com/business/economics/301031/b220m-phuket-mall-planned

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