Luxury developer Gaysorn Property expects the opening of Gaysorn Amarin, formerly known as Amarin Plaza, with an investment of 1 billion baht will help boost revenue by 50% to 1.3 billion baht this year.
Charn Srivikorn, the company's chairman, said 75% of the retail space, totalling 17,600 square metres, has been signed under contract. The company is also dealing with two new brands, which, if the deals were completed, would increase occupancy to 80%.
"After the renovation, the retail space has been reduced from 19,600 to 17,600 sq m but with higher rents," he said. "The initial rate of return is positive at 30-40% as Gaysorn Amarin shifts up from grade C to A- which will allow for an increase of 50% in rents."
The office space at Gaysorn Amarin, with the total lettable area increasing to 24,000 sq m from 20,000 sq m, had an occupancy rate of 75%. The majority of tenants were service-based, consultants and beauty brands.
After the full opening of Gaysorn Amarin this month, the company expects to achieve total revenue of 1.3 billion baht by the end of 2024, a 50% increase from last year.
This revenue was generated from the two other towers, Gaysorn Village and Gaysorn Tower.
Once Gaysorn Amarin operates for a full year next year, revenue is projected to increase to 1.5 billion baht from the three towers, which have a combine total office space of 50,000 sq m and a combined retail area of 40,000 sq m. They are valued at 20 billion baht.
At present, the three towers receive daily foot traffic of 70,000-80,000 visitors, up from 40,000-50,000 during the pandemic. Half of these visitors are international tourists, with the majority coming from China, Japan, the Middle East, India, Europe, the US and other Asean countries.
"The break-even period for this renovation is expected to be within five years during which we anticipate achieving a minimum occupancy rate of 90% for both office and retail space," said Mr Charn.
Gaysorn Amarin is situated on freehold land owned by the Srivikorn family, one of the largest freehold landlords in the Ratchaprasong area.
In 1982, the family leased the plot to the founders of Amarin Plaza. This group was renamed The Erawan Group in 2005.
The group eventually decided to focus solely on the hotel business and approached Gaysorn Property to purchase the property a few years before the 30-year lease for the plot expired in 2015.
"We directly engaged with many retail tenants, mostly luxury and watch brands. Some opened their concept stores in Thailand at Gaysorn Amarin such as Louis Vuitton," he said.
Some took their first steps in Thailand such as American steakhouse Lawry's The Prime Ribs, Ryoan Cosmetic from South Korea, Dough Bros Pizza & Doughnuts and Raynue.