Siam Arun adjusts real estate strategy From serviced apartments to Ekkamai, community shopping centers to deal with the volatile business of COVID-19 – Fresh News

Mr. Jirapat Hetanurak, Managing Director of Siam Arun Group Co., Ltd. revealed that the company has been a serviced apartment developer under City Resort for more than 30 years. Currently, there are 6 locations in Sukhumvit 39 and 49, including another in Sriracha District. Chonburi, total 1,300 rooms, with 100% of the customer base being Japanese who come to work in Thailand. And in the past, the company has income from rent in the serviced apartment business of more than 700 million baht per year.

The City Resort is also well known among Japanese people. Even during the Covid-19 outbreak in the past 2 years, some customers have been called back to Japan. But after opening the country, some Japanese customers have started to gradually return. Even if the lease contract is shortened from a minimum of 6 months to 1-3 months

from the uncertainty situation This led the company to adjust its investment strategy towards the development of the Ekkamai project (@EKKAMAI), a community shopping center. Or a community mall on an area of ​​​​5 rai in Soi Ekamai 9, investment budget only for construction costs 65 million baht, designed as a single-storey retail building, area 3,200 sq m.

Consists of 16 shops, 130 parking spaces with EV parking. Support target groups B to B+, both Thai residents and tourists in the Ekkamai area 70% and 30% foreigners. Currently, 90% of the bookings have been rented and are under construction. and will deliver the space to the tenants within Jan. 2022 and ready to open for full service on March 27, 2022

This will allow the company to earn an average of 2 million baht per month from rental income or a payback rate within 3 years. It has been open since the beginning of last year. In addition, if the project responds well The company plans to expand investment in other areas. on the accumulated land of the Company Including the company has another 4 rai of land in the same area that can be developed into a super mixed-use. or an office building Serviced apartments and commercial spaces are the future.

The Company also has accumulated plots of land, especially in Soi Thonglor, Ekamai, Sukhumvit 39 and 49, as the Company is one of the businesses of the Sri Krung Wattana Group Company Limited, the pioneer of the Bangkok Steel Manufacturing Group, and United Flour Mill Public Company Limited or U. FM wheat flour producer and owner of UFM Fuji Super