Suvait: Opportunities in Bangkok suburbs

SET-listed MBK Plc plans to spend 500-800 million baht to develop a new community mall in Pathum Thani province next year.

President and chief executive Suvait Theeravachirakul said the mall will be located on 20 rai opposite Bangkradi Industrial Estate in Pathum Thani.

The project is the company's second community mall following The Nine Center on Rama IX Road. The new community mall will occupy a small corner of a greater 1,500-rai plot owned by MBK. The company is currently building Riverdale Golf & Country Clubs and the Park Riverdale townhouse project on the land.

The new community mall will serve residential projects inside a 8-10 kilometre radius.

"There are many community malls in inner Bangkok, but we see opportunities in Bangkok's suburban areas," he said.

Apart from the new community mall, MBK is also conducting a feasibility study to develop a mix-used complex in the future.

Regarding the upcoming constitutional referendum on Aug 7, Mr Suvait said he would keep an eye on the result as it would affect the country's overall economy. MBK, however, will continue to expand its business no matter the outcome of the vote.

"We have been cautious over new investments for the past several years, when the country started experiencing political problems, and we will remain cautious," he said.

Meanwhile, Somphol Tripopnart, MBK's managing director for its shopping centre department, said The Nine Center had proven successful due to its differentiation from other community malls nearby.

Revenue from The Nine Center was 225 million baht last year and is projected to rise to 250 million baht this year. Currently, 12,000 shoppers visit The Nine Center each day. The company plans to spend 10 million baht to improve its landscape this year.

Mr Suvait said MBK's revenue in the first half grew by 3-5%, driven by its financial services and hotel businesses.

MBK shares closed yesterday on the Stock Exchange of Thailand at 14.90 baht, unchanged, in trade worth 518,520 baht.