Siam Future Development Plc together with IKEA recently hold a signing ceremony for a joint venture "Mega Bangna", a Baht 10,000 million project featuring lifestyle home furnishing center, "IKEA Store" first launched in Thailand.
In a major investment program, Siam Future Development Plc, Thailand’s leading lifestyle Center today announces during the press conference in Bangkok to jointly develop a mega project in urban Bangkok. The joint venture, according to Nopporn Witoonchart, SF Chief Executive Officer, the project is jointly developed by Siam Future, IKANO Pte ( An IKEA owned subsidiary), and S.P.S. Global Trade Co., Ltd.
The project, with estimated value at 10,000 million Baht featuring a Lifestyle Home Furnishing Center with IKEA store for the first time in Thailand.
Nopporn Witoonchat, Chief Executive Officer of Siam Future Development (SF), said in order to handle this mega project, SF Boards of Directors has approved capital increase of Baht 600 million to existing shareholders at a ratio of 1 existing share for 1 new share, at the price of Baht 1.20 per share.
The Board also approved SF to set up SF Development Co., Ltd, a joint venture between SF, IKANO Pte. and S.P.S. Global Trade Co., Ltd., with registered capital of Baht 2,500 millions. SF and IKANO hold 49% each while S.P.S. hold the remaining 2% respectively of the new company which will be established to develop a Mega Bangna, on a 290 rais plot of land along Bangna- Trat Road.
Mega Banga, located on Bangna-Trad Km.9, Kanchanaphisek Outer Ring Road, is designed with a new concept of a one-stop mall of various products and services. Anchor tenants including the much waited for IKEA Store, a 40,000-square-meters store, and department store, branded lifestyle fashion, restaurants, IT center, ultimate entertainment center, and a very large parking lot capable of accommodating 8,000 cars. Mega Bangna’s core target group are new generation aged 20 years and above who love design and home décor, with mid-range to high income and enjoy a comfortable and modern lifestyle. Mega Bangna is projected to officially open in the third quarter of 2011 with target to attract over 40 million visitors per year.
Mr. Korn Chatikavanich, Finance Minister of Thailand, was a guest of honor at the Joint Venture Agreement signing ceremony at the Residence 301 room, Grand Hyatt Erawan Bangkok Hotel.
Mr. Tom Huzell, Managing Director, IKANO Pte. Ltd. said: Thailand is a very important market for IKEA and we are proud to be part of this exciting project. In fact Thailand is one of our production base countries in Asia for our export market.
Mr. Nopporn Witoonchat said: "This joint venture is an important step that goes along with the government policy to build trust and trigger foreign investment in Thailand. Mega Bangna will create 20,000 jobs for the locals while extending business opportunity for other local contractors
SF has a very solid track record since its first inception. We operated 29 lively and well received lifestyle centers in Bangkok and in other major resort cities. The Mega Bangna project extends and enhances our capability to offer ultimate and modern lifestyle for our valued customers., added Mr. Nopporn.
The company’s total rental space will be increased by 260,000 square meters, making the total rental space up to 500,000 square meters as projected, or a 100% growth by 2011. This would significantly boost up its total revenue in years to come.