JSP plans B1-bn distribution hub with warehouse
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Property firm JSP Group plans to invest more than Bt1 billion to develop its first distribution centre on 120 rai (19 hectares) on Buddha Mondhol VI.
The group aims to double its sales from its property projects from the Bt5 billion expected for this year to about Bt10 billion within three years. It saw Bt1.2 billion in sales in the first five months of this year.
President Tanongsak Manotham-raksa said the new project, consisting of a distribution centre and a warehouse, would attract transport companies that currently rent shophouses on Buddha Mondhol II and III as their offices and warehouses, causing traffic congestion in the area.
“We have seen great potential to develop a distribution centre in the area for those firms. There are currently more than 100 transport companies in Buddha Mondhol II and III and they have shown interest in moving out, as they have received many complaints from individual residents in the area,” he said.
Tanongsak said the new distribution centre would be able to serve more than 300 transport companies. Each unit will have between 400 and 600 square metres of space. About 80 per cent of the units will be for sale and the rest for rent. The price of those units for sale will be about Bt6.9 million, while the rent will be Bt45,000 per unit per month.
“We have completed all design work and the distribution centre will be completed within three months,” he said.
JSP Group yesterday announced the launch of China Centre (Sampheng 2), touted as the second Chinatown, at a cost of Bt3.7 billion. The project is on 62 rai on Kalapapruek Road. It will comprise 470 shophouses priced from Bt4.99 million to Bt16.5 million.
The group set up a new subsidiary called China Centre (Sathon-Kalapapruek) in April with Bt450 million in registered capital to develop the project. Since it opened for bookings late last month, about half of the units have been sold.
Construction of the China Centre project will be completed within 18 months and it will be officially opened by the end of next year.
“Thai-Chinese entrepreneurs who trade in Sampheng but don’t have shop fronts have high demand for this area, so we decided to launch China Centre to tap this group,” Thanongsak said.
He said the company was negotiating to buy another 64-rai plot opposite the current China Centre project. If the land purchase is successful, the group plans to develop it as the extension phase of the China Centre. The cost of development will be about Bt3 billion, similar to the first phase.
He said the property market in the second half of this year would recover, particularly in zones that were flooded last year, since there was high potential and demand remained strong.
JSP Group plans to develop several new projects in the second half, including TTN Avenue, which is a 10-rai plot leased for 30 years on Nang Linchi Road to develop a mini-community mall with more than 1,700 square metres of leasable area.
Another project, among others, will be Sup Roong Rueang City Phase 4 in Bang Pu near the Bearing Skytrain station in Samut Prakan.
