Trump In Venture With Gaysorn

[Boater]

Narai Phand site to be redeveloped

KANANA KATHARANGSIPORN

The American property billionaire Donald Trump will join in the investment and development of a new luxury retail plaza with Gaysorn Group on the four-rai plot that used to house the Narai Phand handicraft centre in central Bangkok.

An industry source said Mr Trump flew to Bangkok last month to talk with a Gaysorn executive about the site while Charn Srivikorn, director of Gaysorn Holdings, just returned from the United States last week.

''It's likely that Mr Trump will co-invest in this project. He will also co-design this new luxury shopping mall,'' said the source, asking not to be named.

The project at the Ratchaprasong intersection, Bangkok's prime retail site, is intended to compete with two direct rivals nearby, CentralWorld and Siam Paragon.

Mr Trump may buy shares in Gaysorn Land Asset Management Co Ltd (Glam), a joint venture between Gaysorn Group and the Hong Kong property firm Hong Kong Land, by buying stakes from the Hong Kong side.

In July 2008, Mr Trump's eldest son Donald Trump Jr told the Dubai-based daily English-language newspaper Gulf News that ''the Middle East and Asia will provide opportunities for growth in future''.

The executive vice-president of the Trump Organisation viewed Bangkok as one of the emerging markets, saying ''We're looking at a lot of the Pacific rim area. [in] Thailand, we've spent a lot of time looking in Bangkok.''

The portfolio of the Trump Organisation, renowned as an international developer of deluxe properties, includes office buildings, hotels, condominiums, casinos, golf courses and country clubs, mainly in major cities in the US.

It is developing Trump International Hotel & Tower at The Palm Jumeirah in Dubai, launched last year with an average price of US$2,450, equivalent to 905,000 baht per square metre.

According to the property consultant Colliers International Thailand, Gaysorn Group this year bought the Narai Phand site from Phahonyothin Group for a 30-year leasehold.

The company plans to develop three components: retail, serviced apartment with 178 six-star units managed by Starwood, and high-end residences with 30-year leasehold contracts.

Colliers managing director Patima Jeerapaet said the project was expected to be completed in 2010.

In the future, there would be an extension from Gaysorn to Amarin and CentralWorld to provide convenience for shoppers, who are equally divided between Thais and foreigners.

Late last year Gaysorn bought back Amarin Plaza, which had 7.5 years remaining on its leasehold, from Erawan Ratchaprasong Co Ltd at 300 million baht. The saleable area at Amarin Plaza is approximately 26,000 square metres with about 400 shops.

''Gaysorn wants to renovate Amarin Plaza and upgrade it to be a luxury complex,'' Mr Patima said. ''Unfortunately 40% of the tenants still have the remaining lease of 7.5 years so the plan is still pending until the leases expire.''

Besides 26,000 sq m at Amarin Plaza, Gaysorn Group has Gaysorn Plaza, managed by a joint venture with Hong Kong Land, with 12,600 sq m, compared to lettable space of 400,000 sq m at CentralWorld and 250,000 sq m at Siam Paragon.

Gaysorn also plans to develop luxury villas for sale at Cape Paradise on Patong Beach in Phuket, comprising 20 villas priced at around 100 million baht each. The show unit will be finished by the end of the year.

source - http://www.bangkokpost.com/080908_Business...p2008_biz24.php

[onethailand]

Good thing they have a lot of money - judging by their performance at Gaysorn Plaza, I suspect they're going to lose more money redeveloping Naraiphand... and even more doing Amarin.

It's a great intersection, don't get me wrong - but everything in that area was dying a slow death until Central took over the World Trade Center. Gaysorn Plaza was bleeding money doing high-end stuff. Big C went the opposite direction - downmarket - and did a bit better but is still a losing proposition. World Trade Center was dead. Now, as Centralworld, they have a lot more marketing power, plus there's plenty of good eating places in there, but many tenants are still having trouble producing a profit.

Trump himself is hardly known for picking winners... LOL... most of his properties have been sold, or are run down. Together, they will make a formidable combination... not

[dotcom]

Completed in 2010? Don't make me laugh.

Mister Trump obviously has no experience building in Thailand. 2013 is possible.

That's if they break ground tomorrow.

Edited September 8, 2008 by dotcom

[NotNew2You]

Good thing they have a lot of money - judging by their performance at Gaysorn Plaza, I suspect they're going to lose more money redeveloping Naraiphand... and even more doing Amarin.

It's a great intersection, don't get me wrong - but everything in that area was dying a slow death until Central took over the World Trade Center. Gaysorn Plaza was bleeding money doing high-end stuff. Big C went the opposite direction - downmarket - and did a bit better but is still a losing proposition. World Trade Center was dead. Now, as Centralworld, they have a lot more marketing power, plus there's plenty of good eating places in there, but many tenants are still having trouble producing a profit.

Have to agree...don't know what it is about that area makes it sorta a black-hole for retailers. Gaysorn has a great location at the corner of Rama 1 and Rachadamri...with some of the best high-end hotels adjacent and nearby and on a skytrain stop. However, it seems to never gel as someplace to go. Even before the make-over of a few years ago, there was always very few people in there whenever I was there. Even today, when I think of shopping in Bangkok, I never really consider Gaysorn or that whole Rachaprasong area...usually too congested and too much trouble.

Also, Gaysorn tries to be so hi-so and there is only so much hi-so resident/expatriate/tourist money to go around. One reason I don't like WTC/Central World is that it's just too darn big...who the heck wants to spend the time to find someplace in that huge complex.

No, for my shopping, I can get everything I need at Emporium or Central Chidlom and they are very convient and just the right size.

[dotcom]

Newsflash for the author of the piece above.

Amarin Plaza is already joined to Gaysorn Plaza. A covered walkway would be welcome to (Central) World Trade Center.

NotNew agree completely. I remember the great hoopla surrounding the opening of Planet Hollywood some years ago. Your comment of a black hole for retailers is spot on.

[onethailand]

I have no problem with large shopping centers, so long as they are convenient.

One of the biggest problems with Ratchaprasong is that they didn't get a BTS station, which ended up becoming Chidlom Station, conveniently connected to Central Chidlom through some undoubtedly heavy lobbying, despite heavy opposition from the elite girls school accross the street. As a result, Ratchaprasong is kind of stuck in between.

The second is that Amarin was quite poorly managed under the old owner. Had they gotten together with the Srivikorn family to push for the BTS station to be located directly at the intersection (which obviously makes a whole lot more sense), Ratchaprasong would not only have been booming, it could have served as a second interchange station as well.

And last, the biggest issue of all - CentralWorld/World Trade Center made a huge mistake by creating so much space between them and the street. Though it obviously makes for a good New Year's Celebration location, the rest of that time, that space is mostly unused.

14 years ago, when Gaysorn first opened, I had the chance to speak with the management as I was the business editor for Thailand Times. Beautiful building, lots of space inside - but too much for my liking, and very high-end as well. I wrote a feature piece for the weekend edition entitled "Black or White" - and in the piece I predicted that Gaysorn would likely be a white elephant. Though Gaysorn is still there, it's pretty clear that they've never made money and survive only through their close contacts with the hi-so brand owners and what I suspect is enormous rent.