Simon Property of the U.S. will partner for three Thai malls
Tapping into Thailand’s expanding economy and Thais’ passion for shopping, Simon Property Group, an American developer of retail and mixed-use facilities, announced last week it has formed a joint venture with local developer Siam Piwat and will invest over $300 million in three new malls in Thailand.
“Bangkok is one of the world’s greatest cities, and its metropolitan population combined with its huge international visitorship make it the ideal first location for our initial premium outlet,” said Mark Silvestri, Simon’s executive vice-president, in announcing the joint venture agreement in Bangkok.
The Bangkok Post said the entry of Simon Property Group “promises to rapidly escalate competition in Thailand’s already hotly contested retail market,” where Thailand’s Central Group is the leading player.
Siam Piwat is a smaller firm with a strong reputation in the upscale segment of the market because it operates luxury malls such as Siam Paragon, Siam Center, Siam Discovery, and mixed-use developments such as Iconsiam.
The alliance with Simon adds muscle to Siam Piwat’s ambitions The American firm was described by The Nation newspaper as the world’s largest publicly traded retail real estate company with a portfolio of more than 230 properties. The partnership is Simon’s first in Thailand, and its fourth in Asia.
Chadatip Chutrakul, Siam Piwat Group’s chief executive officer said the first of the three luxury projects the joint-venture partners would develop would be in eastern Bangkok. While she would not divulge the exact location, she said, “It will an area that most people have to pass when they travel to the central business district of Bangkok.”
She said the partners plan to open that project in late 2019, and each have an equal stake in it. The development would have over 540,000 square feet of retail space for lease.
“We share a vision with Simon that the future of retail is about offering visitors to our destinations an exciting experience that goes beyond shopping and provides them with opportunities to socialize, have fun, learn and pursue their lifestyle interests,” Chadatip said.
Silvestri said Simon’s portfolio features some of the most recognizable luxury outlets in the world including Woodbury Common Premium Outlets (New York), Desert Hills Premium Outlets (Palm Springs), Las Vegas North Premium Outlets, Gotemba Premium Outlets (Tokyo), Yeoju Premium Outlets (Seoul), and Johor Premium Outlets (Malaysia).
Simon’s Premium Outlets platform has an ownership interest in 96 properties globally, including 15 in Asia with nine in Japan, four in South Korea, and two in Malaysia, according to The Nation newspaper.
Photo courtesy of http://www.siampiwat.com/en/news/65