Platinum Mall to be expanded

SPT Management, the operator of Platinum Fashion Mall, a retail and wholesale centre on Bangkok's Phetchaburi Road, will spend Bt2.5 billion to enlarge the mall and build a four-star hotel nearby. The company is confident about making such an investment despite the recession, believing it will gain from the expected economic recovery over the next two years, its chief executive said.

SPT president and CEO Surachai Chotjurangkool said last week the company was developing 2 rai of land adjacent to the mall in order to increase the selling area and create a hotel.

The expansion will utilise 40,000 square metres, of which 10,000 square metres will be used for sales, 20,000 square metres for the hotel and 10,000 square metres for a parking lot.

Platinum Fashion Mall currently has 56,000 square metres for retail and wholesale business. After the expansion is completed, Surachai said, the mall will be one of the biggest wholesale centres in Asean by value.

The investment plan was increased from an earlier budget of Bt2.3 billion to accommodate the purchase of decorations for the hotel. Funds will be sourced from Bangkok Bank and the company's cash.

"We have to expand our business because the existing mall is quite full. Several garment wholesalers want to set up shop at Platinum Fashion Mall but we don't have vacant space for them," Surachai said.

At present, approximately 50,000 shoppers visit Platinum Fashion Mall from Monday to Friday, and another 50,000 to 60,000 on weekends. The numbers are up from 30,000 shoppers a week in 2006, the first year of operation.

The company will finalise a rental rate for the new space early next year. The retail and wholesale area is scheduled to open by the end of next year, while the hotel is expected to begin operations at the end of 2011.

Chatchawal Pongsutthimanas, a member of SPT's executive committee, said the value of garment wholesales in the Pratunam area of Phetchaburi Road totalled approximately Bt40 billion to Bt50 billion a year, of which Bt20 billion was traded at Platinum Fashion Mall.

Garment wholesales showed flat growth in terms of value in the first half of this year from last year, he said. However, he expected the business to recover in the near future, saying Thailand's garment industry is robust.

SPT Management has hired Accor to operate the new hotel under the Novotel brand. To be named the Novotel Platinum Hotel, it expects an occupancy rate of 50 per cent in the first year of operation.

THE NATION, August 3, 2009