The lease on the building, located near Rajaprasong junction and where the ministry runs the Naraiphand souvenir shop, expires in May 2007.

Rajaprasong junction is located in an up-market area, home to five-star hotels such as the InterContinental Bangkok and Grand Hyatt Erawan hotels and five-star shopping malls such as gigantic CentralWorld and Gaysorn shopping plaza.

Vanchai Janvuttarunggul, general manager of The Mall Group, which also operates The Mall department store and shopping centre, The Emporium and Siam Paragon shopping complexes, said the company had plans for the building after its lease expires. It expects to finalise its business plan by the end of the year.

The building, The Mall's first business venture, was built 25 years back. Five years later, the company leased it out to Naraiphand, which is operated by the Industry Ministry. Vanchai said The Mall decided on leasing out due to a space crunch that hampered its expansion plans.

The ministry turned the space into Naraiphand, a basement level shopping centre for foreign travellers, mostly containing indigenous souvenir items. However, the shops are not doing brisk business and the quarters are rather dated.

Meanwhile, The Mall is on a renovation spree at all of its branches, some of which has already been completed.

The process is still on at one of its branches located on Ramkhamhaeng Road, which has been in operation for 18 years. The branch is the smallest in terms of space, occupying only 8,000 square metres.

It started renovating when its lease with the last tenant ended late last year. The new concept will feature a shopping complex on the lines of a lifestyle and family entertainment zone. The old concept seemed to focus more on people who liked to go out at night. But the number of tenants will remain the same at its 19 shops.

The Mall's maximum rental rate is at Bt500 per square metre, which is also said to be the cheapest in the Ramkhamhaeng area. Renovation is expected to be finished by the end of the year.

Vanchai said The Mall's 500 tenants in its shopping centre zone had experienced 10 per cent year-on-year sales growth in the first half of this year.

He said, the economic slowdown had not kept people from The Mall because the shopping mall offers items and services that are essential for daily life. Moreover, people also like to shop at a place that provides integrated shopping experiences and services.

The Mall recently added a bowling alley, a fitness club and theatres to its branches.

The Mall Shopping Centre Grand Sale from July 27 to August 30.

The campaign includes discounts of up to 70 per cent and 500 coupons to shoppers who stand a chance to win three Ford Focus cars.

Nitida Asawanipont

The Nation