Published on October 18, 2005

Firm to expand into hotels, housing, consulting

After it frees itself from the shackles of a hefty debt burden in early 2006, the operator of Seacon Square shopping mall plans to celebrate its freedom by spending between Bt500 million and Bt1 billion on new businesses.

Seacon Development Plc plans to expand into the hotel, serviced apartments, housing and consulting businesses after it makes a final Bt290-million payment to its bank in January. After that, 11-year-old company will finally be able try its hand in new ventures, said Tatiya Sosothikul, Seacon’s managing director.

The company has already begun a consulting business after it was hired to design and construct a four-storey boutique mall in Prachuap Khiri Khan’s Hua Hin district and to manage rental space in the finished project.

The boutique mall, worth Bt200 million, will be the first of its kind in Hua Hin. It will target middle to high-end Thai and foreigner visitors. Construction will begin early next year and will take a year to complete, he said.

Seacon Development has spent Bt150 million on a four-hectare site on Mai Khao beach in Phuket where it plans to construct a hotel. The style, size, and level of the hotel to be built on the site are still being discussed, Tatiya said.

Seacon Development is also considering whether to manage the hotel itself or partner with a local firm. The investment budget for the hotel is Bt500 million, of which Bt300 million would be funnelled from Seacon’s reserves and the rest from bank loans.

Despite last December’s tsunami, Seacon believes Phuket remains the best area in the country because of its location on the Andaman coast, Tatiya said.

The company plans to find locations and buy land next year for ventures into serviced apartments and housing. It yet to hammer out detailed business plans for these efforts.

Seacon Development is also thinking of setting up a new mid-sized mall in Bangkok. However, it will wait for until a new city zoning plan is issued before deciding on the scope and style of the mall, Tatiya said.

Meanwhile, the 500,000-square metre Seacon Square shopping centre on Srinakarin Road saw revenues grow 9 per cent to Bt607 million, in the first eight months of this year, compared with the corresponding period last year.

The company earned a Bt278 million profit in the eight months ended August 31, an increase of 25 per cent year-on-year. Customer spending increased by 5 per cent.

The company expects to maintain the 9 per cent growth rate this year, which should put revenues at about Bt900 million. It expects to post a Bt385-million profit, up 11 per cent from 2004, Tatiya said.

It will also build a Bt75 million a flyover to carry traffic from Seacon Square to Bang Kapi to make access to the mall easier.

Many areas within the mall are also being renovated, Tatiya said. The food court and Mobile Zone have already been given facelifts. The Thai food area, Tutor Square, and IT Square will be renovated soon.

Seacon Square has set aside Bt20 million for event marketing this year.

Nitida Asawanipont

The Nation

Prachuap Khiri Khan

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