TCC Land to splash B40bn on trade hubs
TCC Land Asset World Co, a property arm of billionaire Charoen Sirivadhanabhakdi, will spend 40 billion baht to develop AEC Trade Centers in eight provinces nationwide, aiming to generate 1 billion baht a year from each site.
Chief executive Soammaphat Traisorat said AEC Trade Center will be the country’s first trade centre for industrial goods and a sales channel for small and mediumsized enterprises.
“Thai SMEs now face a lot of cost pressures once they have their products put on the shelf in modern trade,” he said. “We think we should provide a platform as a sourcing hub between manufacturers and buyers. This model is successful in China, where there are many trade centres all over the country, and we plan to join one of the largest Chinese trade centre operators to trade Thai products with them and vice versa.”
The company aims to have AEC Trade Centers near border areas to promote trade with Asean nations. Each project will need 100-150 rai of land and cost 5 billion baht.
Last year, TCC Land recorded 18 billion baht in revenue, with hotel business generating half and offices for rent and retail business contributing 25% each.
This year, the company’s revenue target is 20 billion baht.
The eight sites for AEC Trade Centers will include Ayutthaya; Chiang Mai; Udon Thani or Nong Khai; Mae Sot District in Tak; Chon Buri; Cha-am in Phetchaburi; Hat Yai in Songkhla; and one more province to be decided.
Mr Charoen has large land holdings in each location.
The Tarad Tor Yod AEC Trade Center will be developed and managed by one of the company’s subsidiaries, Tarad Tor Yod AEC Co Ltd, which will support tenants with an online platform, applications, logistics networks, packaging design and export markets.
The centre will have a trade pavilion with frequent fairs to market tenants’ products.
The first AEC Trade Center will be developed on 150 rai of Phahon Yothin Road in Bang Pa-in, Ayutthaya at the former site of the Big Kings Pratunam Pra-in shopping complex.
The 60-rai mall was acquired by Mr Charoen several years ago for 800 million baht, and the company bought other nearby plots of a combined 90 rai to develop the project.
TCC Land will spend 4 billion baht to construct 10 low-rise buildings with a total lettable area of 150,000 square metres for 2,500 shops. Construction will be completed by the end of the year, and the centre will open early next year.
“Funding will be from our own cash, and we expect to have a break-even period within three to five years,” said Mr Soammaphat, a son-in-law of Mr Charoen.
Rental space will start from 20 sq m, and monthly rents will range from 500 to 1,500 baht per sq m under contracts of one to three years. A three-month grace period is offered for those who book a space by June 2017.
Each of the eight buildings will have its own theme. Tower 1, the largest with five storeys and a lettable area of 69,021 sq m, will be for clothes, textiles, fashion accessories, cosmetics, IT accessories, mobile phones and stationery items.
Tower 2, with three storeys and a total lettable area of 27,588 sq m, will feature dried food, instant food, packaging and an exhibition area of 5,000 sq m.
Tower 3, with two storeys and a lettable area of 16,291 sq m, will have automotive decorations and accessories, electronics and electrical appliances.
Towers 4, 5 and 6 will have a rentable area of 18,845 sq m each and feature home decor, office items, construction materials, furniture and food courts.
The one-storey Towers 7 and 8 will have warehouses with 534 units for rent and a total area of 6,457 sq m, while Tower 9 will be a logistics centre with 40 cargo hatches and an area of 3,795 sq m.