Gaysorn Holding will buy Erawan Ratchprasong, which owns and operates the Amarin Plaza and associated facilities, from the Erawan Group for about Bt300 million.

The Erawan Group's board of directors has approved the sale of a 100-per-cent stake in the subsidiary and the transaction is expected to be completed by the end of next month.

Gaysorn Holding is a subsidiary of the Gaysorn Group.

The acquisition is part of Gaysorn's initiative to enhance cooperation among property owners in the Rajprasong area in order to strengthen its position as the "Heart of Bangkok", Gaysorn Holding director Charn Srivikorn said.

"We will synergise and align with others property owners/operators to strengthen the position of the district," he added.

The Gaysorn Group and its affiliates own several properties around the Rajprasong Intersection and enjoys a solid reputation for developing and managing several branded property businesses.

The Rajprasong area has long been regarded as one of Bangkok's leading commercial and retail centres. It is centred on the intersection of Ploenchit, Rajdamri and Rama I roads.

The area, which is easily accessible via the Skytrain, is home to world-class five-star hotels, luxury fashion shopping, international business offices, fine contemporary dining, gourmet markets, lifestyle stores and entertainment.

"We will apply our expertise to Amarin Plaza to provide quality service and lifestyle experiences for our customers. We will work with Amarin Plaza's commercial office and retail tenants to better meet consumer needs," Charn said.

Kasama Punyagupta, president and CEO of the Erawan Group, said that the deal was based on the belief that further synergies could be created.

As the 30-year period for which the company has leased Amarin Plaza from the Gaysorn Group has only about eight years left, further investment by the Erawan Group to revitalise the retail centre was not financially feasible, he said.

"We then decided to sell to Gaysorn who will work with us to develop the district," Kasama said.

"The beneficiaries are obviously everyone around the Rajprasong area, including the Grand Hyatt Erawan and the Erawan Bangkok," he added.