Prommaharaj Land Development Group, the developer of Bo Bae Tower and owner of the Prince Palace Hotel, is investing 6 billion baht to develop two commercial projects in the Pratunam and Wang Burapha areas worth a combined 12 billion baht.
Krerkkiat Purimaporn, managing director of Palladium World Shopping, a Prommaharaj subsidiary, said the group would resume development of the suspended Pratunam Complex and would change its name to Palladium World Shopping within this year.
The project will have 100,000 square metres of shopping space with the same concept as Bo Bae Tower, with clothing wholesalers, office space and an 800- room hotel worth combined 10 billion baht. Krung Thai Bank will finance the project.
“We refunded the booking money to all buyers of condominium units as we decided to change them into hotel rooms,” said Mr Krerkkiat.
Condominiums, which were in an earlier plan, were not attractive to buyers seeking freehold ownership as they would be located on a leasehold plot.
Last year the group, which previously held 50% in the former Pratunam Complex, took over the rest of the shares from former shareholders. The lease contract will be extended for 30 years from the Religious Affairs Department, the landlord, after the project is completed.
Mr Krerkkiat, who is also the vice-president of Bovornpong Co, another subsidiary, said the group would spend 500 million baht to renovate the former Merry Kings Wang Burapha store and rename it the Mega Play Digital Center after it acquired this property of one of Thailand’s oldest retailers with an investment of around one billion baht.
The project will comprise six- and 10-storey buildings with total rentable area of around 20,000 square metres. Long-term leases will start from 288,000 baht to 2.425 million baht per sq m for three, five or 10 years. Renovations will be complete by the end of the year.
According to Century 21 Realty Affiliates (Thailand), the project’s sales agent, the Merry Kings Wang Burapha closed two years ago due to financial problems. When the store was built two decades ago the plot of almost two rai was priced at only 15 million baht. Now it is valued at 1 billion baht.
Mr Krerkkiat said bookings were now at 15% and the group expected to book 65% of the space on the launch in August and 85% before opening early next year. It will spend 40 million baht a year to promote the 2-billion-baht centre.