Saha Group's investment arm will spend B2bn to develop the second phase of the J Park community mall in Sri Racha
Sri Racha community mall gets educational centre, serviced apartments
Saha
Pathana Inter-Holding Plc (SPI), the investment arm of consumer goods conglomerate Saha Group, plans to spend 2 billion baht to develop the second phase of its J Park community mall in Sri Racha to capitalise on the government’s flagship Eastern Economic Corridor (EEC) scheme.
The move is part of the group’s business strategy of putting more focus on the service sector and shifting away from textiles and garments, where the competition is stiff due to the entry of international fast-fashion brands like Uniqlo, Saza and H&M.
Vichai Kulsomphob, executive director and chief financial officer, said the second phase, spanning 5-10 rai, will feature a restaurant, educational centre and serviced apartments, catering primarily to new Japanese investors expected to set up shop in the EEC.
Mr Vichai said the development plan for J Park’s second phase is about four years.
The J Park community mall opened in 2013 on a 10-rai plot, though construction of the second phase was subsequently delayed.
Apart from J Park’s expansion plans, the company is seeking Thai partners for joint ventures to expand its service business.
SPI is further eyeing potential mergers and acquisitions this year.
In addition, the company plans to open a university after launching Waseda Japanese Language and Culture School several years ago.
“The Thai economy in 2018 seems to be better than last year,” Mr Vichai said. “We expect to invest 1-2 billion baht in our group and outside our group this year via joint ventures and mergers and acquisitions. But such investments will be done on a step-by-step basis.”
In a related development, Mr Vichai said SPI recently received an award for the best deal in Thailand at the Achievement Awards 2017, after acquiring three food companies valued at more than 92 billion baht.
The three food companies are Thai President Food, the Mama instant noodle maker; President Bakery Plc, the Farmhouse bread maker; and President Rice Products Plc.
The acquisitions were part of efforts by SPI to expand its overseas investments and attract more foreign funds to Saha Group. The deals brought SPI’s market capitalisation to 36.9 billion baht as of Feb 15, up from 20.4 billion baht last June.
Mr Vichai said the company plans to extend its reach to two or three new service-related businesses. Each business will require an investment of at least 1 billion baht.
The company aims to increase the value of these new investments to 30 billion baht over the next 2-3 years. Further details about those plans were not forthcoming.
The company sees revenue growth of 5-8% this year from 6 billion baht in 2017.
SPI shares closed yesterday on the Stock Exchange of Thailand at 75 baht, up 25 satang, in trade worth 9.4 million baht.