Sinthoranee Property Co, owned by the Phaoenchoke family, the founders of SET-listed Thai Rung Union Car Plc, is poised to jump on the high-rise residential and housing project bandwagon in the next three years.
Master plan of Victoria Gardens, a lifestyle community mall scheduled to open in November.
“High-rise residential and housing projects are our future pipeline,” said Prasong Piyatanasirikul, assistant managing director of Sinthoranee Property.
“Entry is a must if the group wants to raise its property business to account for 50% as planned over the next three to five years.”
According to Mr Prasong, the Phaoenchoke family still has more than 70 plots of land nationwide available for property development.
The property business, primarily run by Sinthoranee, accounts for 20% of Thai Rung's revenue.
Last year, Thai Rung reported revenue of 3.37 billion baht for a net profit of 354 million.
Founded in 1993 with registered capital of 200 million baht, Sinthoranee Property started with warehouse construction and moved into office buildings, hotels, resort properties and now community malls.
The company is set to officially open Victoria Gardens, a lifestyle community mall on Phetkasem Road, on Nov 29 after investing 800 million baht excluding the land price.
Victoria Gardens is the next stage of development for Pavilion Place, a lifestyle community mall on which Sinthoranee Property spent 120 million baht a few years ago.
Pavilion Place includes two buildings of three storeys on five rai with a total rental area of 4,000 sq m. The project admittedly was not popular enough, given its relatively small area and parking lot. Sinthoranee Property has decided to expand the project to cover the entire area of 20 rai owned by the company.
Victoria Gardens features more than 200 stores with a gross leasable area of 14,000 sq m and parking for over 400 cars. Target customers are families and teenagers, while target tenants include a 24-hour supermarket, food and drink, education, health and beauty, banking and fashion outlets.
“After a thorough study and survey of the new project's potential and what people are fond of and past experiences learned from Pavilion Place, we find the classic European and garden style to be the perfect match for the new development,” Mr Prasong said.
“We strongly believe in the new investment, as the study shows Phetkasem Road has more than 70,000 students from 14 schools and universities, a population of 340,000 within a five-kilometre radius and more than 500 companies located there.
"More importantly, more than 100,000 vehicles a day travel on Phetkasem Road."
Mr Prasong said the new mall was expected to break even in seven years.
TRU shares closed Friday on the SET at 5.55 baht, down five satang, in trade worth 10.4 million baht.