Siam Piwat Co, the 50-year-old operator of Siam Center, is joining with Charoen Pokphand Group and Magnolia Quality Development Corporation (MQDC) to develop a megaproject worth 35 billion baht on the Chao Phraya River opposite Mandarin Oriental Bangkok Hotel.
Tipaporn Chearavanont (left), CEO of Magnolia Quality Development Corp, shakes hands with Chadatip Chutrakul, CEO of Siam Piwat, for the start of three joint ventures they plan on the Thonburi side of the Chao Phraya, calling it ‘the largest local private commercial development’.
The investment will be spread over three joint ventures, comprising Grand River Place Corp, Grand River Park Corp and Grand River Front Corp.
Siam Piwat Holdings, wholly-owned by Siam Piwat, holds a 50% stake in the three ventures and MQDC and CP Group share 25% each.
MQDC is owned by Tipaporn Chearavanont, the youngest daughter of Dhanin Chearavanont, who is CP Group chairman.
Chadatip Chutrakul, CEO of Siam Piwat, said details of the mix-used project are not finalised but the plan is for a retail plaza and residential condos.
The project’s construction on a 40-rai plot on Charoen Nakorn Road between the Millennium Hilton and The Peninsula Hotel is expected to start early next year and finish in 2015.
Siam Piwat will conduct a market survey with 5,000 people _ both Thais and foreigners who work and stay in a 20-kilometre radius from Charoen Nakorn _ about their expectations for the project. Survey results will be used to create the project concept and design.
The final design will be completed near year-end, after which booking for retail space will be opened.
Funding will come from loans and the joint ventures’ cash flow.
“It’s the largest commercial development ever undertaken by the private sector. When it’s completed, the project will be a new landmark for Bangkok,” said Mrs Chadatip.
“We want to create a physical and emotional landmark, something that can really enhance Bangkok’s status in the region and the world. An iconic landmark on the river can move the city forward like Paris, London and Shanghai,” said Ms Tipaporn, CEO of MQDC.
The project aims to increase tourism and business, and should create 350,000 jobs over the next four years, she said