TCC Land creates two new companies
TCC Land Group, a property arm of beverage tycoon Charoen Sirivadhanabhakdi, has separated its business into two sub-groups, leisure and retail/office, as part of its 2015-2019 business plan.
Under the restructuring, TCC Land Co will be a holding company with 100-per-cent stakes in two new firms, which were established early this month. They are TCC Land Asset World Leisure Co, which will focus on the hospitality business, and TCC Land Asset World Estate Co, for the office-building and retail-property businesses.
Napat Charoenkul, managing director, retail business, TCC Land Asset World Estate Co, said he would oversee six retail-property brands: Asiatique, Gateway, Central Point @ Siam, OP Place, Pantip, and Boxspace. They now have total retail space of 150,000 square metres. The retail group has set aside an investment budget of about Bt20 billion to expand its retail space to 220,000sqm by 2019. The investment will come from its cash reserve.
Its plans to develop three new Asiatiques between 2016 and 2019. The one in Chiang Mai will use the Asiatique brand, while the other two projects, in Hua Hin and Pattaya, will be branded Asiatique Prime. Total investment on their retail space will be Bt2.2 billion, with another Bt11 billion is earmarked to develop hotels near the three new Asiatiques.
Next year, the company plans to invest Bt1.2 billion to develop the second phase of Asiatique Charoen Krung and between Bt1 billion and Bt4 billion to develop a four-star hotel under the Marriott brand nearby.
“Our investment in the hotel at Asiatique Charoen Krung will depend on the number of rooms, between 200 and 800, and the design concept. The cost will be about Bt5 million per room,” he said.
The company has also budgeted Bt460 million to renovate its three Pantip branches at Pratunum, Ngam Wong Wan and Bang Kapi between now and 2017. Heavy competition from other shopping centres has reduced the number of tenants at the Pratunum branch, so Bt400 million of the renovation budget will be spent there and the remaining Bt60 million divided between the other two branches.
A total of Bt1 billion will be spent to develop two Boxspaces. The one at Ratchayothin will open in the third quarter of this year, as the other one at Bang Na next year.
Napat said the aggressive investment budget should increase the company’s revenue from its six retail brands from the Bt920 million expected this year to Bt3 billion in 2019. Currently, TCC Land Group earns 40 per cent of its revenue from its hotels, 30 per cent from office buildings, and 30 per cent from its retail properties. The group’s revenue averages Bt10 billion a year.
