SIAM PIWAT Co Ltd, Thailand’s leading mall developer, yesterday announced its five-year business plan, which requires a new capital investment of more than Bt70 billion in new mixed-use developments.
Part of the investment budget will be allocated to invest in diversified business expansions, especially in retailing, operating and maintaining commercial properties such as office buildings and logistics, as well as in digital and innovation.
The company now operates 46 subsidiaries under a group with total assets of about Bt45 billion, and expects its revenue to increase by one and a half times over five years.
Siam Piwat owns and operates major retail developments including Siam Paragon, Siam Centre, and Siam Discovery, and is a joint venture partner of Iconsiam. The firm posted Bt25.5 billion in total revenue last year, up by 23 per cent over 2017. The company expects its total revenue to increase by between 12 per cent and 15 per cent this year. Iconsiam alone is expected to boost revenue by 42 per cent this year.
Siam Piwat will celebrate its 60th anniversary this year. Chadatip Chutrakul, chief executive officer, says the company is looking to its future as a leader in the creative economy through developing new creations and innovations to win honour for Thailand on the world stage. It is paying particular attention to digital technologies and artificial intelligence (AI), she said.
“Under the investment, we plan to develop at least two major mixed-use developments in Bangkok. They will include many properties, including residential units, shopping malls and other facilities – all in one place,” said Chadatip.
Each development project will require above 50 rai (8 hectares) of land, so the developments will turn to joint ventures with many partners both Thai and foreign, she said.
The company will also explore taking retail development into neighbouring countries, such as Vietnam, Cambodia and Myanmar. Overseas expansion could be done by the company itself, through a joint venture with local partners or under management contracts with retail complex owners.
For 2019, Siam Piwat will open only one new premium outlet mall, “Siam Premium Outlet”, which is being developed for a December opening in a joint venture with US-based Simon Property Group. Locating near Suvarnabhumi Airport in Bangkok’s east, the premium outlet mall will have two entrances connecting to Lat Krabang and the motorway.
“We (Siam Piwat) are negotiating to acquire lands at potential locations in Bangkok, in the eastern, north and middle parts of the city. The lands will be used for our [future] mixed-use development projects in the capital city,” said Chadatip, adding that the company will announce its latest mixed-use Bangkok development this September or October.
She said that as a leader in the creative economy, Siam Piwat will not limit itself to being a mall developer, but instead sees itself as a creator of retail and cultural destinations in which to feature the power of “Thainess”.
“We are in a studying process to expand ourselves into new diversified businesses, including in retailing, operating and maintaining commercial properties such as office buildings and logistics, as well as digital and innovation businesses,” said Chadatip.
She added that for the expansion into commercial properties, the company is looking to acquire existing office buildings in the Paholyothin district. “Thailand has enjoyed better quality and a lower cost of living compared to many neighbouring countries. The newly elected government should see this as an opportunity to make Thailand a regional leader in expanding prosperity to other countries within Asean,” said Chadatip.
“What the new government can do for the country is to promote peacefulness, political stability, as well as law and regulation, that encourages foreigners to invest and stay in the country,” she added.
“As a private sector [company], we would like to see Thailand have a new government administration which puts their effort into building equality in the society, as well as [taking actions] which win the hearts of people from all over the world,” said Chadatip.