Magnolia adds retail wing to complex

Magnolia adds retail wing to complex

B10bn project part of mixed-use development

Magnolia Quality Development Corporation (MQDC), a property arm owned by the Chearavanont family, is spending over 10 billion baht to develop a commercial complex on Sukhumvit Soi 101/1, targeting a rental income of 1 billion baht in 2019.

Whizdom 101, a mixed-use development project of MQDC, will be located on a 43-rai plot, near Sukhumvit Soi 101/1. With a total investment of over 30 billion baht, the project will provide a commercial complex with a lettable area of 20,000 square metres.

The project is scheduled to be open for commercial operations in October 2018.

Chief executive Visit Malaisirirat said the project will be a commercial part of Whizdom 101, a mixed-use development site to be located on a 43-rai plot on Sukhumvit Road near Sukhumvit Soi 101/1, where Piyarom Sports Club was formerly located.

The commercial complex is set to cover 26 rai of the 43-rai plot, and will comprise retail spaces with a lettable area of 20,000 square metres to fit 200 stores. These shops will rent out at a monthly rate starting from 800 baht per sq m.

"Locations around Sukhumvit Soi 101 have high growth, surrounded by residential areas, international schools and offices. In a three-kilometre radius, there are 187,978 people living and up to 1.34 million in a 10km radius," Mr Visit said.

MQDC, whose major shareholder is Thippaporn Chearavanont, the youngest daughter of CP chairman Dhanin Chearavanont, expects to have a rental income of 1 billion baht in 2019 and hit the break-even point within 10 years of operation.

The complex will also include office spaces with a lettable area of 70,000 sq m. The first phase will have 40,000 sq m with rents starting from 700 baht per sq m a month, to be launched in mid-2018.

There will also be three condo towers with a total of 2,000 units worth a combined 20 billion baht. The company has launched two towers, with the first one selling out and the second with 70% sold.

Having the commercial complex in front of the mixed-use development Whizdom 101 can raise condo prices by 25%. The second tower offers units priced 150,000 baht per sq m, up from 120,000 baht per sq m at the first tower, he added.

MQDC this year will transfer condo units worth a combined 5-6 billion-baht from the 2.7-billion-baht Whizdom Avenue Ratchada-Ladprao near the Lat Phrao subway station, and the 5.5-billion-baht Magnolias Ratchadamri Boulevard on Rajadamri Road.

"All of the projects we will complete and transfer this year are in upper-end segment where buyers do not have high household debt and will not be rejected by banks for mortgages," he said.

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