SIAM Piwat Group, which owns high-end shopping centres in Bangkok, has entered into a joint venture with US-based mall giant Simon under which they will spend Bt10 billion to open three luxury retail properties by 2020.
The partners say the new centres – badged under Simon’s Premium Outlets brand - will further expand the diversity of attractions on offer at the country’s retail and lifestyle destinations.
The first project will be developed on 150-rai site in Bangkok.
“We cannot disclose the location of where we will build our first luxury Premium Outlet in Bangkok at this time, other than to say it will an area that most people have to pass when they travel to the central business district of Bangkok,” Siam Piwat Group chief executive officer Chadatip Chutrakul said at a press conference yesterday in response to a question on the location of the centres.
However, she said that the project would be home to a strong mix of more than 200 stores, including some of the most sought-after luxury and designer brands, alongside international and local brands. The centre will provide an “oasis” serving locals and tourists and feature an impressive array of dining, leisure and entertainment options.
Chadatip said the first project under the joint venture – in which the partners hold equal stakes – will provide around 50,000 square metres in gross leasable area. It is targeted to open in October 2019.
The other two centres will be built in the Southern and Northern regions, with Chadatip again declining to disclose the cities. The partners will begin spending the Bt10 billion investment this year.
Simon is the world’s largest publicly traded retail real estate company with a portfolio of more than 230 properties. The joint venture is Simon’s first in Thailand, and its fourth in Asia. In total, plans for the joint venture initially envision the three luxury projects to be built in Thailand.
The Premium Outlets brand is a natural fit for Thailand, as the country’s growing population and the 35 million-plus tourists a year seek high-quality merchandise at value prices, the partners say.
Bangkok has more than 14 million people in the greater metropolitan area and is the main port of entry for Thailand’s extensive and growing tourism industry.
At the first of the projects, customers will enjoy everyday savings of 25 to 70 per cent on a vast array of designer apparel, footwear, fashion accessories, leather goods, and specialty brands, similar to those found in Simon’s existing luxury Premium outlets around the world.
“We share a vision with Simon that the future of retail is about offering visitors to our destinations an exciting experience that goes beyond shopping and provides them with opportunities to socialise, have fun, learn and pursue their lifestyle interests,” Chadatip said.
Mark Silvestri, Simon’s executive vice president said, said: “We are very excited to bring our world-renowned Premium Outlets brand to Thailand and partner with Siam Piwat, an outstanding real estate company.”
Simon’s Premium Outlets platform has an ownership interest in 96 properties globally, including 15 in Asia with nine in Japan, four in South Korea, and two in Malaysia.
Silvestri said Simon’s portfolio features some of the most recognisable luxury outlets in the world including Woodbury Common Premium Outlets (New York), Desert Hills Premium Outlets (Palm Springs), Las Vegas North Premium Outlets, Gotemba Premium Outlets (Tokyo), Yeoju Premium Outlets (Seoul), and Johor Premium Outlets (Malaysia).