SIAM PIWAT yesterday unveiled a five-year strategy to invest Bt55 billion in new project developments.
The 2015-2019 programme, which will be conducted in Bangkok and elsewhere, will include the first foray by the company in expanding its property projects in other Asean markets offering potential.
The move will be in line with the company's objective of consolidating its position as a "thought-leader" in the rapidly evolving retail development sector, and to double its annual revenue to Bt50 billion in the next three years.
Siam Piwat is the operator and owner of many of Bangkok's leading malls, including Siam Paragon, Siam Centre and Siam Discovery Centre, and a joint-venture partner in Iconsiam, the Bt50-billion landmark riverfront property project on Charoennakorn Road.
Developed in partnership with Magnolia Quality Development Corp and Charoen Pokphand Group, Iconsiam is expected to open in 2017 and break even within around 10 years.
Chadatip Chutrakul, chief executive officer of Siam Piwat, said that of the total Bt55-billion investment capital earmarked by the company, about Bt42 billion would be |allocated to the development of |seven or eight property projects, including the Bt20 billion to be spent by Siam Piwat on the Iconsiam project.
Meanwhile, another Bt10 billion will be for three or four new joint development projects in the field of entertainment, arts and culture, as well as retailing. These will be undertaken in partnership with international firms.
Another Bt3 billion will be for the launch of three or four brands of franchised specialty stores and international restaurants in the Kingdom, she said.
JV investment
Siam Piwat is also conducting a feasibility study together with potential partners into joint-venture investment and development of property projects in some Asean markets, said the CEO.
"Thailand's retail development sector has been going through a period of exceptional growth with a record amount of new investments, worth totally over Bt210 billion, announced by various companies over the last 12 months," said Chadatip. "Thought-leadership drives Siam Piwat's success. We need to express a business vision that is one step ahead of the others.
"We need to have a good understanding of the market situation and individual customers, who are trendy and have greater expectations. We will provide them a valuable experience, which goes beyond their expectations," she added.
Chadatip said that underpinning its future growth was the company's focus on offering novel concepts in projects, as well as new retail and lifestyle ideas that are the first in Thailand - and some even also in the world.
"In line with this strategy, Siam Piwat will focus on being an innovation leader in providing unparalleled experiences to visitors to its properties, as well as being a partner of choice to retailers and investors, aiming to double its revenues in three years," she said.
She said that to reflect this strategy, the company had adopted the corporate vision of "The Icon of Innovative Lifestyle", and had unveiled a new company logo.
Over the past 12 months, the company has been approached by many international players, who want to invest with Siam Piwat in property and retail developments in Thailand, she said.
This reflects the Kingdom's strong strategic location at the centre of Asean, she said, adding that it is surrounded by many countries with potential that have been in the process of fully opening up their markets. Thailand as a result can be a strong gateway to those markets.
"With a lower cost of living and property prices compared to other countries in Asean, Thailand can be a good location for many international companies in setting up their regional headquarters to penetrate the Asean market," said the chief executive.
Moreover, the government has shown a strong intention and will do its best to reform the country and solve many problems, both politically and economically, she said.
"However, as a business entrepreneur, I would like to see a clear picture of Thailand in the future. The government should adjust and grant any laws and regulations that attract foreign investors, as well as inbound tourists, who can act as 'brand ambassadors' for the country," she said.
Meanwhile, the company will undertake a major renovation of two of its existing malls - Siam Paragon and Siam Discovery Centre - next year.
The renovation work will take between six and eight months to complete, said Chadatip.