Property developer Grand Uniland Co plans to convert I'm Park @ Samyan, a community mall worth 700 million baht, to a real estate investment trust (REIT) in the second quarter of 2018.
It will also launch a new mixed-use project with an investment of 3 billion baht in the Yaowarat area.
President Suwan Lertpunyaroj said the company will hold a 15% stake in the REIT, which will also include another community mall worth 800 million baht owned by other developers. Bualuang Securities will be a financial adviser.
"Proceeds will be used to fund a development of new community mall projects including Harbour 55 in Hua Hin where we will invest 300 million baht, and a future site in the old central business districts," he said.
Opened three years ago, I'm Park @ Samyan has a total lettable area of 20,000 square metres with a rental rate of 1,000 baht per sq m a month. It has an occupancy rate of 95%.
The three-storey mall is located on a leasehold four-rai plot on Chula 9 Road near Chulalongkorn University's CU International House. The plot is also owned by the university.
The company yesterday launched I'm China Town, a mixed-use project with an investment of 3 billion baht. It is located on a three-rai plot on Charoen Krung Road, close to Wat Mangkon MRT station, for a lease of 60 years.
The project began construction in August 2016 and will be completed in the first quarter 2019, when the MRT Blue Line extension between Hua Lampong to Tha Phra will start running.
The project will comprise two eight-storey buildings with total lettable and saleable area of 30,000 sq m and 300 car parking lots.
The first building will be the I'm China Town Residence condominium, worth 200 million baht with 46 units of 21-25 sq m and priced from 2.9 million baht for a 30-year lease contract, will be launched on Nov 24 and is expected to be sold out on the day.
The second will have 5,000 sq m of retail space on four storeys with a monthly rental rate of 2,500 baht per sq m, and a 224-room hotel called the Holiday Inn Express China Town, an InterContinental Hotel Group brand, with room rates of 1,800 baht a night.
"Location is most important in retail. If it is too far [from communities], it is not feasible," Mr Suwan said. "A community mall should be close to communities with high densities to be worth the investment."
The company plans to turn I'm China Town into a REIT after a few years where I'm Park @ Samyan will be put, he said.
Grand Uniland also has One @ Bobae, a 200-million-baht lifestyle wholesale mall, which, with a total lettable area of only 5,000 sq m, is too small to be spun off into a REIT.
