Developer plans new complex, malls expansion
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Siam Future Development plans to invest more than Bt800 million this year to develop a 15,000-square-metre neighbourhood shopping centre on Tiwanon Road and to expand two malls in Bangkok, including one on Sukhaphibal III Road.
Kittinanth Sumruatruamphol, chief financial officer, said yesterday that the Tiwanon neighbourhood centre, which will occupy 4-5 rai (6,400-8,000 square metres) of land, would require about Bt400 million.
Construction will take nine to 12 months. It will open next year.
The two extension projects will use up about Bt200 million each and will be completed next year. Each will add 7,500sqm of gross leasable space. The company declined to disclose the other location.
Siam Future Development operates about 30 retail properties, including neighbourhood and lifestyle centres, with Bangkok alone accounting for 375,218sqm of retail space. With the expansion, total retail space operated by the company will exceed 400,000sqm.
“However, we have no plan yet to expand in the provinces. Bangkok still has room for neighbourhood and lifestyle centres. We also don’t want to take any risk from different lifestyles and shopping habits of consumers upcountry,” he said.
The company has also signed a contract to start managing Bangkok University’s Imagine Valley community centre in October.
Siam Future Development reported first-quarter net profit of Bt1.09 billion, leapfrogging from Bt108.3 million in the same quarter last year, on a Bt992-million extraordinary investment gain from its Mega Bangna project, of which it owns 49 per cent.
The firm aims to raise rents at its malls by an average 15 per cent this year, which should boost annual rental income by 15 per cent to about Bt1.5 billion.
It targets its revenue jumping about 80 per cent this year on plans for another community centre and the new community centre management contract.
First-quarter revenue also benefited from the Mega Bangna project, soaring 220 per cent to Bt1.32 billion. Rental income edged up 4.3 per cent, thanks to additional revenue recognised from its Nawamin Festival Walk project.
“We expect our net profit from operations to increase 80 per cent this year, or from Bt84 million to Bt150 million. Our net profit from asset revaluation will also surge to more than Bt1.5 billion this year, including the Mega Bangna project,” Kittinanth said.
