Thailand’s Siam Future Development Pcl. and Ikano Pte. Ltd. of Sweden on Monday signed an agreement to invest together in building a shopping centre on the eastern outskirts of Bangkok which will be the largest in Asia.
The agreement was signed here by Nopporn Witoonchart, chief executive officer of Siam Future Development, and Tom Huzell, managing director of Ikano Pte. Ltd. a subsidiary of Ikea and S.P.S. Global Trade.Under the agreement, construction of the Mega Bangna Shopping Center will start late this year and due to be launched during the first quarter of 2011 with total investment of Bt20 billion.
The shopping centre will occupy an area of over 40,000 square metres and will become Thailand and Asia’s largest complex offering furniture products. It hopes to attract about 40 million customers annually and will offer more than 20,000 jobs on completion.
Mr. Huzell said his company had earlier invested significantly in Singapore and Malaysia and believed that the Mega Bangna Shopping Center could help Thai furniture producers to be able boost overseas exports. He expressed optimism that Thai politics and economy would improve in future.Thai Finance Minister Korn Chatikavanij, who witnessed the agreement signing ceremony, said it was a positive sign that foreign investors had decided to invest in a mega project in Thailand as they believed that economy would improve in the next few years.
Siam Future Development stock on Monday jumped 10.6 per cent to close at Bt3.74 on the Stock Exchange of Thailand, its highest since last October