TCC Land plans huge expansion Developer to invest Bt10 bn a year

TCC Land, the property arm of liquor tycoon Charoen Sirivadhana-bhakdi, is planning an aggressive investment programme over the next five to 10 years.

It will join with foreign partners to pour Bt10 billion a year into different types of property developments.

CEO Wallapa Traisorat - a daughter of Charoen - said that to become an integrated property firm, TCC Land would set up joint ventures with four strategic partners - from the US, the Netherlands and Singapore - to develop different types of properties from the Sirivadhanabhakdi family's land bank. The family's land bank has properties in many provinces.

The first new business will be called Premium Outlet. It will develop a retail and residential project on about 8 hectares of land on Kaset-Nawamin Road - part of an 80-hectare plot owned by the family. For this project, the company will form a joint venture with Premium Outlet of the US, which has branches in Japan and South Korea, as well as its home base. Contracts will be signed this year, Wallapa said.

The second deal involves a joint venture with a Dutch property firm to develop a 1,600-hectare land plot in Cha-am district of Phetchaburi province as a residential project. Original plans were to locate a Disney theme park on the property, but TCC Land has changed its plans. Another site has been found for the Disney park.

"We continue to keep contact with Disneyland, but we think the Cha-am location is not suitable for the theme-park concept, and as a result we'll change to another area for this project," Wallapa said.

The third joint venture will involve a Singaporean firm that is expert in the logistics business. It will develop a logistics system for the entire business interests of the Sirivadhanabhakdi family.

Currently, Thai Beverage and Berli Jucker both have their own logistics systems to deliver their products. However, the companies believe the group's land and transport resources are sufficient for the development of a single logistics network to serve demand throughout the Kingdom. As a result, TCC Land plans to expand its business interests to cover logistics systems, she said.

The fourth joint venture will involve another Singaporean firm that is expert in the business of industrial estates, and plans are afoot to develop family land in Rayong province as a new industrial estate.

Wallapa said under the company's strategy, TCC Land would own as much as half of each joint venture. It expects the new joint ventures to make combined investments totalling Bt10 billion a year until the business plans are complete. Half of this will come from TCC Land, she said.

"We entered the property business in 2001, and we believe we're now strong and confident enough to expand our business to become an integrated property developer. This will combine residential projects, office buildings, retail business, hotels and resorts, warehouses, logistics, convention centres, theme parks and industrial estates," she said.

As a matter of business policy, TCC Land has taken on new projects only after finding strategic partners with strong experience in project development.

Earlier, it joined Singaporean firm CapitaLand to establish TCC Capital Land, which has developed eight residential projects in Bangkok, both condominiums and detached housing, worth up to Bt20 billion. They are Athenee Residence, Villa Rachahru, Villa Sathorn, Villa Ratchadumri, North Park Place, The Empire Place, The Emporio Place and Royal Residence.

The Royal Residence won Thailand Best Interior Design and Thailand Best Property awards at the International Property Awards 2007, announced in London. Athenee Residence has also won four star awards from Thailand Best Development.

TCC Capital Land expects total revenue of Bt4 billion this year and Bt8 billion next year. It plans to launch four new residential projects next year worth as much as Bt8 billion.

TCC Land has also signed a contract with US-based Starwood to manage its 10 hotels in Thailand and China. Construction of three of them, located in China and on Koh Samui, is now complete, and they are ready to operate. The next three are under construction in Thailand, and construction will start on the final four between next year and 2010. Investment in the Bangkok, Koh Samui and China hotels amounts to Bt10 billion.

Meanwhile, the company is negotiating with the Treasury Department to renew its contract to manage the Queen Sirikit National Convention Centre.

"We believe that when we have good partners who have strong experience and are ready to help our business plans, then we'll achieve our goals. But we have to take time to find the best partners," Wallapa said.

At present, TCC Land manages property worth up to Bt100 billion throughout Thailand.

Source: The Nation - www.nationmultimedia.com