A total of 4 developers have expressed their interest in building a community mall on a land plot along the Chao Phraya River in Thon Buri, reports local media. The shopping center is set to be built on a site owned by the Public Warehouse Organization (PWO).
The 4 companies who have come forward to develop the land are Grande Asset, Narai Property, Siam Piwat, and Univentures. Each one has experience developing retail projects in Thailand. PWO wants to apply a public-private partnership model to work with the winner of the site. The 20 rai plot is situated in the Bukkhalo area of Thon Buri and is next to the Chao Phraya River.
PWO wants to add value to its empty warehouse space and can do this by renovating the site into a modern community mall. The organisation estimates that a shopping center at the site could generate up to THB600 million in revenue over the course of 30 years.
“The PWO’s Thon Buri warehouse covers nearly 20 rai of land that would be worth around THB1.4 billion. We want to create some cash flow from a leasing fee,” says Col Direk Deeprasert, Vice-Chairman of the PWO board, to the Bangkok Post.
Should the community mall project be approved, the PWO will start by conducting an environmental impact assessment. It will then host a public hearing before starting construction. Once that has been completed, it will take 2 years to build the mall.
The PWO will issue a long-term lease contract of around 40 years to whoever develops the site. A leasing fee of around THB40 million per year is what the organisation could expect to earn from this contract. At the moment, the warehouse generates nearly THB10 million each year. However, a study by Thammasat University Research and Consultancy Institute showed PWO it could earn more by leasing the land out.
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