Zeer Property to renovate Rangsit mall
ZEER PROPERTY has set aside an investment budget of nearly Bt400 million to renovate 280,000 square metres of its Zeer Rangsit Shopping Mall in the final quarter of this year after investing Bt3.5 billion to build The Hub Rangsit since last year.
Up to 60 per cent of the investment budget will be borrowed from commercial banks and the rest will come from the company’s internal cash flow, managing director Surapol Techruvichit told a news conference yesterday at the grand opening of The Hub Rangsit, a wholesale shopping centre for accessories and fashion products.
He said the company had to renovate Zeer Rangsit Shopping Mall after opening The Hub Rangsit, because the number of shoppers at the mall was expected to increase from 80,000-90,000 a day to 100,000-120,000 a day.
The Hub Rangsit is in the same location as Zeer Rangsit Shopping Mall on 86 rai (13.75 hectares). The Hub has total retail space of 70,000sqm. It has opened booking for about 50,000sqm, of which 85 per cent has already been rented out.
Meanwhile, the company is looking into developing an apartment complex worth Bt600 million on 8 rai behind Zeer Rangsit Shopping Mall two or three years from now after opening its first apartment building early this year. That complex has 140 rooms, and has an occupancy rate of about 70 per cent. This means demand for apartment in this location is strong, Surapol said.
The retail market in Rangsit was highly competitive but the company believed that its location and rental prices would attract both tenants and shoppers to The Hub Rangsit.
“Our location focuses on shoppers from the North and Northeast who want to buy products for distribution in their shops in the provinces, without the need to travel to [Bangkok’s] central business district, and face traffic jams,” he said.
Company also plans to list
After opening The Hub Rangsit yesterday, Surapol said the company expected revenue of Bt700 million this year, up 16.6 per cent from last year’s Bt600 million. Zeer also targets revenue of Bt1 billion next year, Bt300 million of the total from The Hub Rangsit, and the rest from Zeer Rangsit Shopping Mall.
The company also plans to list on the Stock Exchange of Thailand (SET), and is adjusting its shareholding and business structures to meet the SET standard.
“The Stock Exchange of Thailand suggests us to restructure our shareholders structure when now 98 per cent of the company’s stake hold by Asia Hotel Plc, who now is listed company in the Stock market. If we want to be listed company that has to restructure our financial structure, shareholder structure that has to clear from Asia Hotel Plc,” he said.
The company believes it will take a year or two to prepare for listing. It plans to increase its registered capital from Bt225 million to Bt300 million, with an initial public offering of 75 million shares at par value of Bt1.
