J.J. Center Co, the developer of In Square shopping centre near Chatuchak weekend market, is confident it will open its door to shoppers in late November after delays for over a year.
Dusitpath Sangiamsakdikorn, CEO of J.J. Center Co, stands with the billboard to promote the In Square mall, slated to open in November.
The company had a shareholding change two months ago with the entry of Dusitpath Sangiamsakdikorn, who now owns a 30% stake, with the remaining 70% belonging to the Srikraiwin family.
Mr Dusitpath, a professional manager with various business experiences, now serves as the company's CEO and is pushing forward the eight-rai shopping project to officially open next month.
The mall will be open every day.
"I came in and began talking with existing shop tenants who made lease agreements with us in 2010-2011. But the long delay made them feel less confident in the project. I convinced them we will open the centre for sure," he said.
After the talks, Mr Dusitpath said 99% of existing tenants agreed to stay on and would come in to decorate their shops soon.
Construction at In Square is now 95% complete. Built on the State Railway of Thailand's leasehold land, the eight-storey project has 20,000 square metres of leasable space for 2,000 shops. About 40% of the total space or 8,000 sq m have been leased since 2010-2011.
The company plans to find some banks to provide financial credit for these tenants in the near future. The mall was delayed because Islamic Bank, the project financer, had cash flow problems last year, creating a chain reaction of payment delays to the project contractor. And when tenants went to get loans from the bank, they were turned down.
Mr Dusitpath said existing tenants agreed to lease shops at 300,000-400,000 baht per square metre for 30 years. Retail rents have risen by 20% already.
J.J. Center plans to gradually open sales of the remaining retail space after the project is opened. The new prices are set between 400,000-600,000 baht per sq m.
To make the mall more lively and exciting, big tenants like Starbucks, KFC, McDonald's, MK Suki, Burger King, Swensen's and Bookazine are major anchors. Some 50% of the total space has been reserved already.
"We are confident the mall will be fully occupied by year-end or early next year," he said.
To prevent speculation, the company will frankly ask retail tenants when they will open their shops. If they say they have no plans, it will rent the shop back and allow the tenants to yield 8% in the first three years. The yield will grow to 12-15% or 20% in the next five to six years.