Akephatanakij Co, the operator of Century Movie Plaza, plans to spend 3 billion baht to build a new mixed-use project in Bangkok, expected to be completed in 2023.
Kampol Poolvoralaks, the company's vice-president, said Akephatanakij will start to build the mixed-use project on 5-6 rai in Bangkok starting in 2021. The project will be completed in 2023 and will comprise a neighbourhood store or community mall and hotel.
The rapid pace of urbanisation has resulted in a boom of condominiums, residential townhouses and educational institutions, Mr Kampol said.
"A community mall has good growth potential if we have a proper location and a good tenant mix that responds to the demands of local customers in that community," he said.
Akephatanakij is owned by Kasem Poolvoralaks. The company expanded into the retail business by opening the first Century Movie Plaza, at a cost of 1 billion baht, near Victory Monument 13 years ago.
The plaza generates 200 million baht in sales for the company each year.
Through affiliate companies, Akephatanakij is involved in hotels, pharmaceuticals, rented villages, apartments and wet markets. The company has three or four plots of land awaiting development.
"We were quite successful with the first Century Movie Plaza," Mr Kampol said. "With 13 years in retail, we are ready to move on to further successes."
Yesterday, the company officially opened the second Century Movie Plaza Sukhumvit, opposite Tesco Lotus On Nut.
The company spent 3 billion baht to develop the community mall on six rai of Sukhumvit Soi 81.
The 35-storey building has 70,000 square metres of space, comprising a shopping plaza with a Tops Market and leading restaurant chains, as well as residential units.
The project also includes six cinema screens and a four-star hotel with 382 rooms. Avani Hotel will open next year.
Century Movie Plaza Sukhumvit is targeted at workers with a minimum income of 30,000 baht a month.
The company set aside more than 10 million baht to promote the new plaza this year. The aim is to have 15,000 visitors a day, increasing by 30% after opening Avani Hotel.
The company expects 200 million baht from rental fees at Century Movie Plaza in the first year and hopes to break even within the next 7-10 years.
At the same time, the company is planning to spend millions of baht to renovate Century Movie Plaza's Victory Monument branch next year.
"Apart from retail businesses, we will pay more attention to the development of a hotel project in the future because the tourism business will keep growing," Mr Kampol said.
