Dutch retailer sees opportunity in Thailand and VN

The company has developed its first resort-mall project in Asia, Promenada Resort Mall Chiang Mai, set for completion in late 2012.
“On behalf of the investor, we have seen Asia, especially Thailand and Vietnam, as a strong potential market with growth in spending power and value of properties,” said Tjeert Kwant, president and chief executive officer of ECC International Real Estate.
Kwant said ECC had been also looking for investment opportunities in other cities in Thailand and Vietnam.
“Negotiations are going on for developing two mall projects in Hanoi and Ho Chi Minh City in Vietnam, which will be announced respectively in the first and second half of next year. For Thailand, our second mall project will be conducted in a city, probably in the Northeast, early next year,” he said.
“For this investment, we are looking at potential cities with big population and under-supply in retailing,” he added.
Kwant said doing business in Vietnam would be more difficult.
“In Vietnam, we cannot own but [must] lease land from the government. The inflation and interest rates in Vietnam are extremely high. We, however, like difficult things. If you can do it in a good way, you will be successful.”
Costing Bt2.9 billion, the Promenada resort mall is built on 58 rai (9.3 hectares) on the new Chiang Mai-San Kamphaeng Road, and has been designed to blend in with the vibrant city lifestyle and surrounding “close-to-nature” feel of Chiang Mai, the company says.
The two separated low-rise three-floor buildings with bridge connection will cover 92,800 square metres in combined building space, of which 50,000sqm is net leasable area. It will contain between 350 and 400 retail tenants altogether.
Kwant said the Promenada resort mall would have a huge catchment area covering Chiang Mai, Lamphun and Lampang, within a 90-minute drive. More than 80 per cent of shoppers will be local middle- and upper-class people, and about 20 per cent tourists.
Kwant, who moved to Bangkok with his family three years ago, sees Southeast Asia, especially Thailand and Vietnam, as growing in importance for ECC’s investment in the future.