TCC Land Group, the property arm of beverage tycoon Charoen Sirivadhanabhakdi, is focusing on its retail and hospitality businesses by budgeting Bt7 billion to develop new projects through the year 2013.
Of that total, Bt2 billion will go to two retail businesses, Asiantique the Riverfront at Charoenkrung Road, and the Digital Gateway project on Ekamai. The other Bt5 billion are for two hotels.
TCC Land Retail's senior vice president Panot Sirivadhanabhakdi spoke at a news conference introducing Asiantique the Riverfront yesterday.
He said the additions meant the group's retail businesses would reach a combined 700,000 square metres next year when Asiantique the Riverfront opens in March and Digital Gateway at the end of 2012. Half of the total 700,000sqm will be retail space and the other half for car parks, event areas and other project facilities.
Currently, the company has retail space of about 650,000sqm. These include Pantip shopping centres, The Market, Digital Gateway at Siam Square and Tawanna.
The group's rental fees from retail businesses has recently recorded between Bt1.2 billion and Bt1.5 billion a year. When both Asiantique and Digital Gateway at Ekamai are completed next year, the company expects rental fees from retail business will achieve Bt2 billion in the next two years from now, Panot said.
TCC Land Group has six property businesses: retail, hospitality, office buildings, golf courses, exhibitions, and residential. This group has total revenue of nearly Bt10 billion a year.
Asiantique the Riverfront is part of a megaproject to develop 70 rai (11.2 hectares) on Charoenkrung Road as a multifunctional project. Asiantique will use only 28 rai. The other 42 rai has the potential to be developed as hotel, residential and shopping areas. The business plan will be realised in the next five to 10 years, Panot said.
Meanwhile, the company's hospitality business now has 5,000 rooms in Thailand and overseas. They are recording occupancy rates 60-70 per cent. The business also has potential to grow along with the growth of the country's economy.
"Our hotel business did not get negative impact from the country's political uncertainty," he said.
For the Asiantique the River project, the company will open the first phase at the end of this year and plans for its grand opening next March. The project has now already succeeded in booking 90 per cent of the total retail space for rent. The company offers prices of between Bt1,000 and Bt2,000 per square metre a month. The project is close to the Chao Phraya River and about five minutes by car from the Krung Thon Skytrain station.
Napat Charoenkul, project director of Asiantique, added that this project expected about 20,000 shoppers a day, who will spend an average Bt500 per head per day. Half of the shoppers are expected to be foreign visitors. The company expects rental income to average Bt300 million to Bt400 million a year, which means it will generate enough to cover its investment in about five years.
In a separate matter, Panot denied the rumour that TCC Land had taken over Raimond Land through a backdoor listing.
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