The SET-listed Property Perfect Plc (PF) plans to invest 19.5 billion baht over three years to develop four community malls in Bangkok before putting them into a property fund by 2015.
Chief executive Chainid Ngowsirimanee said all four projects will be located near existing and new mass transit lines and are expected to break even after seven years.
The first two projects, Metro West Town on Kalapapruek Road and Metro East Town in Lat Krabang district, will start construction by the third quarter and be completed by the end of next year.
Construction of the other two projects, on Ram Intra and Ratchadaphisek roads, will start early next year and be completed in 2015. Each will be located on both sides of the roads.
The Ratchadaphisek project near Big C will have 15,000 square metres as PF's new head office.
All projects will be developed by We Retail Plc, an affiliate in which PF holds 90%. Funding will be from project finance, PF's own cash and the affiliate's capital, which will be raised from 800 million to 1.3 billion baht.
PF will generate revenue of 15 billion baht from I-Condo projects from 2013-14 that will support retail investment.
We Retail also plans to get listed on the stock market in 2015. That is the first year it expects to have revenue from rental fees at retail projects, which it sets at 1,000 to 1,500 baht per sq m per month for general tenants and 350-450 baht for tutorial businesses.
"We're targeting revenue of 2 billion baht from rents and the property fund in 2015," said Mr Chainid.
"We're in talks with two Japanese investors who will co-invest in We Retail."
Somkit Tantadvanichkul, the founder of ThinkWork Co, which will manage PF's retail business, said Metro West Town with 165 shops will target 250,000 nearby households as well as about 5,000 families in PF's The Lake @ Metro Park condo.
The Lat Krabang project, which will be located in front of PF's two low-rise projects on Sukhumvit Soi 77, will have 160 shops and support 1,000 families living nearby. That figure will increase to 1,600 families in the near future.
PF shares closed yesterday on the SET at 1.57 baht, down three satang, in trade worth 13.6 million baht.
About the author
- Writer: Kanana Katharangsiporn
Position: Business Reporter