Siam Piwat, a local leading retail property developer and operator of Siam Paragon, Siam Centre and Siam Discovery Centre, said it will consider all potential possibilities of overseas expansion, Chollachat Meksupha, first executive vice president of Siam Piwat’s business development and investment division, said.
The company will also spend approximately Bt4 billion in the development of its first premium mall in the eastern part of Bangkok in partnership with US-based Simon Property Group. The 150-rai (24-hectare) mall will be located close to Suvarnabhumi Airport and should be opened by the end of next year.
Outlets for premium brands will cover around 30,000 square metres of retail space, while in the second and third phases – construction of which will begin two years later – retail space will expand by another 7,000sqm and 5,000sqm respectively.
Meanwhile, Chollachat said property developers from other countries, namely China, Malaysia, Vietnam and Myanmar, have approached Siam Piwat seeking possible partnership for the development of shopping malls.
“Once our big shopping mall project, Iconsiam, opens officially in November, then we will reconsider potential overseas projects based on appropriate criteria, such as partner profile, project location, concept and market situation,” Chollachat said.
He said that compared to other neighbouring countries, Vietnam showed the highest potential because it has a mature retail sector along with a rising middle class and increasing number of business corporations.
Overseas expansion is part of the company’s expansion roadmap, and Siam Piwat’s strategy is to focus on collaboration with leading international partners to strengthen its business and reinforce its vision as “the icon of innovative lifestyle” in Thailand’s retail and real-estate industry.
“Over the past four years, we [Siam Piwat] have been operating in accordance with the roadmap laid out to drive long-term growth. We continue studying the feasibility of premium real-estate projects in prime locations. We focus on new businesses including world-class entertainment, arts and culture, and different retail formats that can create added value and benefit our partners’ businesses, surrounding communities and the country. For both domestic and overseas projects, we are seeking joint ventures with global partners who can bring expertise, help revolutionise our offerings and diversify our portfolio, which now consists of fashion, cosmetics, food and beverage, as well as auditoriums,” Chollachat said. “However, we have no definite timeline for overseas expansion. It depends on opportunities and projects being offered by potential partners.”
Uchenna Akujuo, director for international development and finance of Simon Property Group, said its success in the development of premium outlets relied in its strong relationship with top brands in the world.
He said Simon Property Group posted US$5.5 billion (Bt179.5 billion) in total revenue last year. International portfolio accounts for about 10 per cent of its net earnings.