Co-invested by a Scandinavian private fund and High Traffic Media Co, the operator of Jatujak Green Mall, the 220-million-baht community mall will start its development in Phuket by the end of this year.
Managing director Sakda Oudarasak said the Phuket community mall would be the second commercial venture with the Scandinavian offshore fund following Jatujak Green, which is the 100-million-baht project, located behind Chatuchak Weekend Market, to open on July 27.
The company will spend 120 million baht to acquire an eight-rai site near Ao Makham on the route to Sri Panwa Hotel, while construction costs will be around 100 million baht. The joint venture will be 51% held by the Thai firm and 49% by the Scandinavian partner.
“We will start development by year-end and complete it before the Asean Economic Community takes place in 2015,” he said.
Both malls are expected to generate an 18-20% return on investment.
Yesterday, the company signed a memorandum of understanding with Guangdong Hong Kong Economic & Trade Information Exchange Association to establish a hub linking Thai and Chinese trade in Jatujak Green.
It will reserve 15 shops out of the 148 in Jatujak Green to provide space for the association’s members. The conditions include a 20% collection of gross profit as rent during the two-year contract.
The association will help Thai small businesses tap the Chinese market because this requires a customised strategy, he said.
The company will try to limit speculation from brokers or middle men wishing to book several shops and re-rent them at higher prices. Booking will be limited to three shops for one tenant and the shops must not be located separately.
