MBK Plc, the SET-listed operator of MBK shopping centre in Bangkok, is negotiating with local partners to co-develop a lifestyle shopping complex in Tak province to attract Myanmar shoppers.
Daily visitor numbers at MBK shopping centre in Bangkok remained at 80,000 last month, lower than the average of 90,000 in 2013. SEKSAN ROJJANAMETAKUL
The 20,000-square-metre project will be used as a prototype to develop other malls in border towns to cash in on opportunities arising from the Asean Economic Community (AEC), which is set to kick off late this year.
Sakchai Kengkijkosol, managing director for retail operations, said MBK would start constructing the project in the border town of Mae Sot once the government had a clear policy on infrastructure development in response to the AEC.
"We see huge potential in Tak. Mae Sot enjoys 10 billion baht in trade per year, while Myanmar customers come across the border to buy consumer goods in Thailand," he said.
MBK is conducting a feasibility study to develop retail projects in other provinces with special economic zones including Kanchanaburi, Chiang Rai, Nong Khai, Mukdahan and Prachin Buri.
Mr Sakchai said Indonesia and Malaysia also offered good business opportunities, and visitors from these countries were ranked first and second, respectively, among foreigners visiting MBK in Bangkok.
Chief executive Suvait Theeravachirakul said consumer purchasing power in January did not return to normal, with daily visitor numbers at MBK Center remaining at 80,000, still lower than the average of 90,000 in 2013.
However, the company plans to allocate 2 billion baht for expansion this year and next.
At least 1 billion baht will be spent on a renovation of MBK Center and 400 million baht on opening food branches. Another 400-500 million baht will fund the development of single houses on a plot covering 20-30 rai.
Looking further ahead, a condominium project costing 1.5 billion baht on Rama IX Road is due to be completed by mid-2017.
Somkiat Makcayathorn, managing director of subsidiary Patum Rice Mill and Granary Plc, producer of Mahboonkrong packed rice, said the company planned to open 10 restaurants in the coming months, ranging from sukiyaki and other Japanese food to barbecue.
The sukiyaki market is attractive because it has few players.
"We opened our first Sukiyaki Number 1 restaurant in The Nine shopping complex last October and enjoyed better-than-expected results," Mr Somkiat said.
The company plans to open five sukiyaki restaurants this year. It plans to operate food courts outside MBK this year.
Food sales this year will be worth more than 500 million baht.
Last year, total sales of MBK grew by only 3% to 9 billion baht, slightly below earlier expectations.
MBK expects its sales will grow by 4-5% to achieve 10 billion baht this year. About 30% will come from retail business, 15% from hotels, 12% from financial services, 8-10% from property and the remainder from other sources.
MBK shares closed yesterday on the SET at 14.70 baht, unchanged, in light trade worth 733,000 baht.