JV plans service stations at malls
Rayong Purifier, a medium-sized refinery and service-station operator, has expanded its business portfolio through a joint venture to develop petrol stations combined with retail outlets.
The joint venture was formed in June this year between Rayong Purifier and property developer Sammakorn to combine their business strengths and support more aggressive expansion of Rayong Purifier's Pure service stations. Rayong Purifier holds a 51-per-cent stake in the new company, called Pure Sammakorn Development, while Samma-korn holds the remaining 49 per cent. Suchart Hensawang, who has almost 20 years experience in retail management including work with Central Department Store and Seacon Square Shopping Complex, is deputy managing director of the new company. He said the first priority for Pure Sammakorn Development was to develop shopping malls with petrol stations on land in front of Sammakorn's seven or eight residential complexes in and around Bangkok. The combined developments would be built on five-15 rai plots at a cost of Bt80 million to Bt300 million each. Suchart said the company is currently developing a retail complex called Pure Place, which includes a Pure petrol station, on a six-rai plot in front a Sammakorn residential complex on Rangsit Klong Two. The Bt100-million shopping complex will be opened in April next year. The company is also eyeing Sammakorn residential sites on Rachapruek Road for similar developments. "We will also develop retail outlets in existing Pure petrol stations as well as open new medium-size retail complexes on plots averaging two to four rai. They will require investment of Bt20 million to Bt30 million each," Suchart said. He said the company was considering adding a retail outlet to some Pure service stations, including those at Phayuha Khiri in Nakhon Sawan, in Nakhon Ratchasima province opposite the Chok Chai Farm and in front of its oil depot in Rayong province. It expects at least three such projects to be completed next year. "We have set a plan starting from 2008 to develop medium-sized malls in Bangkok suburbs such as Rangsit and Nonthaburi with an average size of 10-15 rai. They will require investment of between Bt150 million and Bt300 million each," Suchart said. Rayong Purifier currently operates 44 Pure service stations, most of which are in the North and Northeast. The company plans to increase the total to over 100 next year by offering a management service to pre-existing, independent petrol stations.
Kwanchai Rungfapaisarn The Nation
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