MBK revamps plan, upbeat on 2011 goal
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MBK is revising its strategic plan, particularly for property development, after the flooding but remains hopeful of achieving its overall revenue target for this year.
Suvait Theeravachirakul, president and chief executive officer, said yesterday that the company witnessed a slight decline in tourists to MBK Shopping Centre and joint-venture shopping malls around Bangkok after many provinces and Bangkok districts were hit by the flood.
Its Pathumwan Princess Hotel next to the main shopping centre also suffered a drop in occupancy.
The company believes the impact on these key businesses will be short-lived. However, the real-estate plan that MBK is focusing on for the next three years is likely to be affected, especially the new project on its 200 rai (32 hectares) of land adjacent to the Riverdale Golf and Country Club in Pathum Thani’s Bang Kradee area.
The company is reviewing its decision to launch this project after it was inundated while the 18-hole golf course remained dry because of its protection measures.
Another Bt1-billion condominium project on 6 rai of its own land on Ratchadaphisek Road is also likely to be suspended. Originally the 400-unit project was set to begin early next year with units priced at Bt2 million to Bt3 million.
MBK posted Bt8.3 billion in revenue in its last fiscal year ended June 30. Of that, 30 per cent came from retail, 30 per cent from packed rice, 10 per cent from financial business, 18 per cent from hotels, 3 per cent from residential projects and 3 per cent from its golf course.
This year will end with 5-per-cent growth, partly as the result of its expansion in the financial industry to reduce risk. For instance, MBK Guarantee offers financing to foreigners for purchases of freehold condominiums.
Other financial affiliates are Thanachart Bank, Thanachart Leasing, Thanachart Life Assurance, Thanachart Insurance, Thanachart Securities and Thanachart Fund Management.
The Nine neighbourhood centre, built to replace the Premier Praram 9 retail project at a cost of Bt1.2 billion, has been open for a few months. It has gross space of 34,400 square metres and parking for 800 cars.
