TCC Land to invest Bt1 billion to open Asiatique in Hua Hin & Pattaya in 2016
TCC Land Co, a property arm of beverage tycoon Charoen Sirivadhanabhakdi, will invest Bt5.65 billion over five years to expand its shopping complexes under the Asiatique and Gateway brands in Bangkok, Pattaya and Hua Hin.
The capital-expenditure plan targets Bt2 billion in rental income from both retail brands by 2019, Napat Charoenkul, managing director of the retail group, told a press conference yesterday.
The retail group, comprising Asiatique, Gateway, Centerpoint, OP and Food Court on Silom, recorded revenue of Bt500 million this year.
Nearly half of the capex plan, or Bt2.5 billion, will be spent on developing a new Gateway shopping centre in Bangkok starting next year, while Bt1 billion will be used to open two Asiatiques in Pattaya and Hua Hin in 2016.
About Bt1.5 billion will be needed to construct the second phase of Asiatique on Charoenkrung Road. Construction of the hotel and retail space will commence next year and be completed in 2016.
The two existing Gateways will be renovated and re-launched in the middle of next year – Gateway Ekamai at a cost of Bt500 million and Digital Gateway Siam Square for Bt150 million. The capex budget will be funded from internal cash flow.
The third and fourth phases of Asiatique Charoenkrung, including four hospitality and retail spaces, are under study. The projects would be developed from 2020-25 with an estimated budget of more than Bt5 billion.
After the renovations of Gateway Ekamai and Digital Gateway Siam Square and the second phase of Asiatique are completed, the company will raise its rental rates for all of them by 10-50 per cent depending on location.
Credit: The Nation