Ikano Private Limited, owner of the Ikea furniture franchise in Thailand, is considering building its first mixed-use property project here.
Expansion director Sebastian Hylving said it was conducting a feasibility study on the market potential of such a project.
If the plan is finalised, the project will be built near the Ikea branch at Megabangna shopping centre in Samut Prakan.
It will comprise residential units, an office building and a hotel or medical centre depending on market demand, the area's population and the convenience of transport.
As Thailand does not allow foreigners to hold 100% rights to land, the development would be under a joint venture with local partners.
Ikana has developed mixed-use projects in several countries including Scandinavian nations.
Mr Hylving said the company was now focusing on building stand-alone Ikea branches.
After receiving a warm response from shoppers to its Megabangna branch, Ikano yesterday announced it will spend 6.3 billion baht including land costs to build a second Ikea branch on a 19-rai plot in Bang Yai district of Nonthaburi.
It has broken ground at the site at CentralPlaza WestGate shopping centre.
The new Ikea branch will be fully integrated into CentralPlaza, allowing customers to enter and leave at every level for the first time at an Ikea store.
“We are creating the world’s best integration of an Ikea store into a shopping centre,” said Mr Hylving said.
The 50,278-square-metre building includes 1,900 parking spaces, a dedicated area for outdoor furniture and two unique cafes – one will “float” over the showroom in an open mezzanine area. The project will create about 2,000 new jobs.
Mr Hylving said he was confident about long-term investment in Thailand.
Mike King, regional retail director for Ikea, said he was confident many of the 1.6 million people who live in Bang Yai and the surrounding area, including a growing population of young families, would make the trip to the new store when it opens at the end of 2017.
The Bang Yai store will be about 20% bigger than the Megabangna branch, offering a complete line of home furnishings. It will provide customers with an inspirational showroom and 9,500 functional, well-designed products, flat-packed and ready to take home.
Mr King said the Bang Yai store would be an integral part of Ikano's overall expansion plan.
Last November, the company opened a second store in Kuala Lumpur and a collection and order point in Phuket.
The new project marks Ikano’s first collaboration with Central Pattana Plc.
Isareit Chirathivat, vice-president of property management at Central Pattana, said he was confident Ikea would help CentralPlaza WestGate achieve its vision of being "the most complete super-regional mall in Southeast Asia".
He added: "We will attract Thai and foreign customers alike and create a truly great destination for people to shop, dine and play in western Bangkok.”
Ikano expands its business abroad via three business models — Ikea stand-alone stores, mixed-use projects and shopping centres.
The company operates five Ikea stores in the Asean region including Singapore, Malaysia and Thailand.
It plans to open another 12 Ikea stores in these three countries and other potential markets. Under its plan, one or two stores will be opened in Asean each year.
The company plans to build three to four new Ikea branches in Thailand over the next five to seven years.