New B300mn Phuket mall to open in January

[Lite Beer]

New B300mn Phuket mall to open in January

The Bukis Phuket mall will be home to 400 boutique stores. Image: DC NINE

PHUKET: A new shopping mall on Phuket’s bypass road consting upward of B300 million is slated to open in January, bringing to the island the first “drive-thru” range of outlets, among 400 variety boutique stalls.

Workers broke ground at the site of the Bukis Phuket Mall, located on nine rai between Central Festival Phuket and the Big C shopping centre on the bypass road, on June 24.

“Bukis Phuket is the first street-style shopping complex that reflects Phuket’s direction of retail markets,” said Chairat Meepremwattana, Executive Director of project developer Multi Property Development Co Ltd.

“It will be a hub for local vendors, fashion, food and entertainment for Phuketians and tourists. A destination for those who would like to explore the local lifestyle and its culture.”

Total investment in the project is estimated at “about B300-400 million”.

“The outdoor shopping complex will have more than 400 variety stores, including speciality shops, to satisfy all customers,” said fellow Executive Director Somchai Meepremwattana.

“We are pushing it to be the ‘Heart of Phuket’, where people of any ages or groups can come and enjoy.”

The centre will be divided into four major zones: food court, drive-through service, shops and events.

“It will be the first shopping complex in Phuket to have many drive-through services that will be open 24 hours, with fast-food restaurants such as McDonald’s and KFC taking part in this new venue,” said Mr Chairat.

Parking spaces provided on site will accommodate more than 400 vehicles and 500 motorcycles.

“There will also be a special area reserved where entertainment, promotional events and concert can be held,” Mr Chairat added.

“We welcome all sort of stores such as local fashion shops, food stalls, restaurants, local service providers, and drive through services and we are interesting to see many stores offer wide range of interesting products at affordable prices. Mr Chairat said

Mr Chairat declined to cite shop unit rental rates, details about the source of funding or the rate of return on investment through the expected revenue generated through outlets at the mall in the opening year, but he said he has good faith the project will be a resounding success.

“We have been in the retail business for the past 20 years,” he noted. “We are working closely with our business associates – design company DC NINE Co Ltd, construction consultant CL Management, and contractor SSS&P Engineering Supply Co Ltd – in developing this project.

“Construction started on June 24 and is expected to be completed by January 2016 or earlier, and it is too early to estimate how long it will take [to recover investment outlay] or how much we will get back from this investment.”

Source: http://www.thephuketnews.com/new-b300mn-phuket-mall-to-open-in-january-53487.php

-- Phuket News 2015-08-04

[LivinginKata]

Another coach stop for the Chinese .... Just what we all need ...

[The Big Mango]

Talking of coach stops , ive just driven along viset road heading north , on the brow of the hill down 15 coaches all parked up.

Guess they must all be for the chinese whever thay have dropped them off and just waiting to pick them up again , but 15 alltogether , jeez

[Felt 35]

to explore the local lifestyle and its culture

That's a lifestyle and culture we get when government and business people in their own interest manipulates lesser knowledgeable people to dance for them.

[faraday]

Parking for 400 vehicles & 500 motocycles..?

Nowhere near enough.

[Shot]

"more than 400 variety stores"

So, 327 shops selling pineapple shaped soap. I wonder what the others will have?

[LivinginKata]

Talking of coach stops , ive just driven along viset road heading north , on the brow of the hill down 15 coaches all parked up.

Guess they must all be for the chinese whever thay have dropped them off and just waiting to pick them up again , but 15 alltogether , jeez

So these 'coach stops' have now extended south to Viset from Chaofa West all the up through the bypass, can't think of any on Chaofa East but don't worry ... they are coming.

[Lupatria]

I'm sure that brings back smiles and happiness to all on a 300 baht minimum wage per day. I just hope they'll have a new bicycle lane for those people to get there.

[DrDave]

Surely they don't mean it will be completed by January 2016? That would be 6 months from groundbreaking. Infrastructure (water, sewer, electric), 300-400 kiosks, fast-food drive thrus, interior and exterior finishing, parking lots, streets - all completed in 6 months????

I don't think I've ever seen anything built in Phuket in 6 months, including the smallest of homes or even chicken coups!

Total investment of 300-400 million baht seems to point to a very low-budget type of place (kind of like the fake "floating markets" in Hua Hin). Anyone care to hazard a guess as to the value of 9 rai in that particular location on the bypass road?

[Somtamnication]

We need another mall like we need a bullet in our head.

[LivinginKata]

Surely they don't mean it will be completed by January 2016? That would be 6 months from groundbreaking. Infrastructure (water, sewer, electric), 300-400 kiosks, fast-food drive thrus, interior and exterior finishing, parking lots, streets - all completed in 6 months????

I don't think I've ever seen anything built in Phuket in 6 months, including the smallest of homes or even chicken coups!

Total investment of 300-400 million baht seems to point to a very low-budget type of place (kind of like the fake "floating markets" in Hua Hin). Anyone care to hazard a guess as to the value of 9 rai in that particular location on the bypass road?

Sure it could be built in 6 months. It's just a low rise simple structures with big car park.

Something the same just being finished on Patak Raod between the Greenman and the Shell gas station. Same folks who own the Fisherman Way small malls south of Chalong Circle past Lotus and north of Chalong circle on Chaofa East. Threw those places up in next to no time and small budget.

[Shot]

Surely they don't mean it will be completed by January 2016? That would be 6 months from groundbreaking. Infrastructure (water, sewer, electric), 300-400 kiosks, fast-food drive thrus, interior and exterior finishing, parking lots, streets - all completed in 6 months????

I don't think I've ever seen anything built in Phuket in 6 months, including the smallest of homes or even chicken coups!

Total investment of 300-400 million baht seems to point to a very low-budget type of place (kind of like the fake "floating markets" in Hua Hin). Anyone care to hazard a guess as to the value of 9 rai in that particular location on the bypass road?

Sure it could be built in 6 months. It's just a low rise simple structures with big car park.

Something the same just being finished on Patak Raod between the Greenman and the Shell gas station. Same folks who own the Fisherman Way small malls south of Chalong Circle past Lotus and north of Chalong circle on Chaofa East. Threw those places up in next to no time and small budget.

Concrete block and some paint. Done. Throw 2000 migrant workers at it, which only half survive the ride there, and it can be done in that time frame.

[DrDave]

Surely they don't mean it will be completed by January 2016? That would be 6 months from groundbreaking. Infrastructure (water, sewer, electric), 300-400 kiosks, fast-food drive thrus, interior and exterior finishing, parking lots, streets - all completed in 6 months????

I don't think I've ever seen anything built in Phuket in 6 months, including the smallest of homes or even chicken coups!

Total investment of 300-400 million baht seems to point to a very low-budget type of place (kind of like the fake "floating markets" in Hua Hin). Anyone care to hazard a guess as to the value of 9 rai in that particular location on the bypass road?

Sure it could be built in 6 months. It's just a low rise simple structures with big car park.

<snip>

I guess I've just seen so many projects that should take 6-12 month to complete, take several years. Probably due to inadequate funding and/or incompetent project management.

There are so many projects around Patong that while not stopped, are progressing at a snail's pace - taking multiples of time longer to complete than what seems reasonable. I guess it just depends upon who's building it.

[NamKangMan]

Talking of coach stops , ive just driven along viset road heading north , on the brow of the hill down 15 coaches all parked up.

Guess they must all be for the chinese whever thay have dropped them off and just waiting to pick them up again , but 15 alltogether , jeez

I take great delight in knowing that every passanger onboard all 15 of those coach buses will not catch one single tuk-tuk for their entire stay on Phuket.

[DLock]

Surely they don't mean it will be completed by January 2016? That would be 6 months from groundbreaking. Infrastructure (water, sewer, electric), 300-400 kiosks, fast-food drive thrus, interior and exterior finishing, parking lots, streets - all completed in 6 months????

I don't think I've ever seen anything built in Phuket in 6 months, including the smallest of homes or even chicken coups!

Total investment of 300-400 million baht seems to point to a very low-budget type of place (kind of like the fake "floating markets" in Hua Hin). Anyone care to hazard a guess as to the value of 9 rai in that particular location on the bypass road?

Was thinking the same thing Dave.

300-400million baht - USD$8.5million...is not a lot of money.

I think they got the number wrong, as I do not believe for a minute they could achieve what they are planning on that kind of money.

...unless it's made of bamboo and thatch...

[steelepulse]

Surely they don't mean it will be completed by January 2016? That would be 6 months from groundbreaking. Infrastructure (water, sewer, electric), 300-400 kiosks, fast-food drive thrus, interior and exterior finishing, parking lots, streets - all completed in 6 months????

I don't think I've ever seen anything built in Phuket in 6 months, including the smallest of homes or even chicken coups!

Total investment of 300-400 million baht seems to point to a very low-budget type of place (kind of like the fake "floating markets" in Hua Hin). Anyone care to hazard a guess as to the value of 9 rai in that particular location on the bypass road?

Was thinking the same thing Dave.

300-400million baht - USD$8.5million...is not a lot of money.

I think they got the number wrong, as I do not believe for a minute they could achieve what they are planning on that kind of money.

...unless it's made of bamboo and thatch...

Funny, I was thinking 300-400 million was way too much for an open air market tent ( as per the drawing) with a few cheap panels to separate each shop. We'll never really know though unless they gave us a sqm size so we could price it out.

[DLock]

Surely they don't mean it will be completed by January 2016? That would be 6 months from groundbreaking. Infrastructure (water, sewer, electric), 300-400 kiosks, fast-food drive thrus, interior and exterior finishing, parking lots, streets - all completed in 6 months????

I don't think I've ever seen anything built in Phuket in 6 months, including the smallest of homes or even chicken coups!

Total investment of 300-400 million baht seems to point to a very low-budget type of place (kind of like the fake "floating markets" in Hua Hin). Anyone care to hazard a guess as to the value of 9 rai in that particular location on the bypass road?

Was thinking the same thing Dave.

300-400million baht - USD$8.5million...is not a lot of money.

I think they got the number wrong, as I do not believe for a minute they could achieve what they are planning on that kind of money.

...unless it's made of bamboo and thatch...

Funny, I was thinking 300-400 million was way too much for an open air market tent ( as per the drawing) with a few cheap panels to separate each shop. We'll never really know though unless they gave us a sqm size so we could price it out.

I read it as "stores" rather than open air market, but you could be right.

I could imagine just paving and carpark, drainage, plumbing, electricity and lighting would eat half that budget.

Guess it depends what it really is.

[LivinginKata]

<snip>

Total investment of 300-400 million baht seems to point to a very low-budget type of place (kind of like the fake "floating markets" in Hua Hin). Anyone care to hazard a guess as to the value of 9 rai in that particular location on the bypass road?

I think the 300 - 400 million baht is way on the high side given the small scale market stalls proposed. Quote "drive-thru range of outlets, among 400 variety boutique stalls".

As for the value of 9 rai of land ... we often see cheap buildings thrown up to utilise vacant land waiting for a premium price buyer. The build cost is recouped in a year or two rental income (and key money).

The value of this premium land would require a multi floor large building with under gound parking to justify the true land cost.

[DLang]

B300mn

That was just the envelopes.

[DrDave]

<snip>

Total investment of 300-400 million baht seems to point to a very low-budget type of place (kind of like the fake "floating markets" in Hua Hin). Anyone care to hazard a guess as to the value of 9 rai in that particular location on the bypass road?

I think the 300 - 400 million baht is way on the high side given the small scale market stalls proposed. Quote "drive-thru range of outlets, among 400 variety boutique stalls".

As for the value of 9 rai of land ... we often see cheap buildings thrown up to utilise vacant land waiting for a premium price buyer. The build cost is recouped in a year or two rental income (and key money).

The value of this premium land would require a multi floor large building with under gound parking to justify the true land cost.

This makes sense - the fact that they would throw up some sort of cheap facility to collect some income over a few years until the land is sold or leased long-term.

Doing the math - say the total investment is 300million, there will be 300 shops, and the expected ROI is 50% (e.g. recoup the construction cost in 2 years, as you say). That means that the total net rent needs to be 150million per year, spread across 300 shops, or half a million baht annually per shop (about 42,000 baht/month). Add utilities, common area maintenance, advertising & promotion and whatever else the developer charges the tenants for, and the average rent per unit could easily be about 50,000 per month. Now add one minimum wage staff, and you're at 60,000/month for a tiny little kiosk-like "shop".

You've got to sell a lot of soap, T-shirts and pillowcases to support an overhead like that.

[LivinginKata]

This makes sense - the fact that they would throw up some sort of cheap facility to collect some income over a few years until the land is sold or leased long-term.

Doing the math - say the total investment is 300million, there will be 300 shops, and the expected ROI is 50% (e.g. recoup the construction cost in 2 years, as you say). That means that the total net rent needs to be 150million per year, spread across 300 shops, or half a million baht annually per shop (about 42,000 baht/month). Add utilities, common area maintenance, advertising & promotion and whatever else the developer charges the tenants for, and the average rent per unit could easily be about 50,000 per month. Now add one minimum wage staff, and you're at 60,000/month for a tiny little kiosk-like "shop".

You've got to sell a lot of soap, T-shirts and pillowcases to support an overhead like that.

You really think the developer or management company cares if the stall leasee can "sell a lot of soap, T-shirts and pillowcases to support an overhead like that".

I look at these small cart type stalls in the various malls all over the island, and I wonder what they cost per month (rent and staff and utilities), and see th disinterested staff playing on their smart phones the entire day ... makes no sense to me.

[steelepulse]

To continue along same tangent, imagine how many new businesses are going to go up in all the new malls that are being built currently. The one in the OP is on the very small side compared to the new bigger ones being built. I can't see many retailers except maybe anchor tenants making any money from these mall spaces. Rents are simply too high for the number of customers and shopping choices the customers have as compared to when the first Tesco opened up. Many in Central, Jungceylon and now Banana Walk have gone tits up due to the high rents, and the supply and demand of customers and outlets.

[DrDave]

Surely they don't mean it will be completed by January 2016? That would be 6 months from groundbreaking. Infrastructure (water, sewer, electric), 300-400 kiosks, fast-food drive thrus, interior and exterior finishing, parking lots, streets - all completed in 6 months????

I don't think I've ever seen anything built in Phuket in 6 months, including the smallest of homes or even chicken coups!

Total investment of 300-400 million baht seems to point to a very low-budget type of place (kind of like the fake "floating markets" in Hua Hin). Anyone care to hazard a guess as to the value of 9 rai in that particular location on the bypass road?

Sure it could be built in 6 months. It's just a low rise simple structures with big car park.

Something the same just being finished on Patak Raod between the Greenman and the Shell gas station. Same folks who own the Fisherman Way small malls south of Chalong Circle past Lotus and north of Chalong circle on Chaofa East. Threw those places up in next to no time and small budget.

Well, here it is late January, and as predicted this project is nowhere near being completed.

Of course it could have been built in 6 months given proper funding, resources and competent project management, but those are critical factors that almost never come into play in Phuket.

I will say, however, that the exception to that rule seems to be the new Makro building in Patong which was constructed in just a few short months working night and day.

[LivinginKata]

Well, here it is late January, and as predicted this project is nowhere near being completed.

Of course it could have been built in 6 months given proper funding, resources and competent project management, but those are critical factors that almost never come into play in Phuket.

I will say, however, that the exception to that rule seems to be the new Makro building in Patong which was constructed in just a few short months working night and day.

And the new Makro in Kata started just a few months ago is well on it's way to structure completion.

[beechbum]

The one in-front of Kathu Kajonkiet isn't far off finishing either.

[sebastion]

Otop rubbish will fill the shops and crappy brands no longer popular in the western countries.

Yawn.

[madmitch]

Looks like this place isn't going to be finished by last January as building seems to have stopped. I'd guess that they were going to be use traders' deposit money to fund the project and not too many people signed up. This has happened many times before.

Also it seems that Blu Pearl is no longer going to be built and the new Central at the old Thai Naan site seems very slow.

What's going on? All the authorities tell us about the huge increase in tourist numbers. Do Central and The Mall Group, the big players in Thailand's retail industry, know something the TAT don't? Like Chines tour groups don't spend very much!

[Shot]

More unfinished concrete block buildings and rusty rebar to go with it. At least we can breath easy for our Chinese brothers and sisters. One less destination to die getting to on a crap bus, with crap brakes and a crap driver.

[stevenl]

Looks like this place isn't going to be finished by last January as building seems to have stopped. I'd guess that they were going to be use traders' deposit money to fund the project and not too many people signed up. This has happened many times before.

Also it seems that Blu Pearl is no longer going to be built and the new Central at the old Thai Naan site seems very slow.

What's going on? All the authorities tell us about the huge increase in tourist numbers. Do Central and The Mall Group, the big players in Thailand's retail industry, know something the TAT don't? Like Chines tour groups don't spend very much!

I saw major building there yesterday. Maybe finished next January?

[madmitch]

Looks like this place isn't going to be finished by last January as building seems to have stopped. I'd guess that they were going to be use traders' deposit money to fund the project and not too many people signed up. This has happened many times before.

Also it seems that Blu Pearl is no longer going to be built and the new Central at the old Thai Naan site seems very slow.

What's going on? All the authorities tell us about the huge increase in tourist numbers. Do Central and The Mall Group, the big players in Thailand's retail industry, know something the TAT don't? Like Chines tour groups don't spend very much!

I saw major building there yesterday. Maybe finished next January?

Maybe they only work on Sundays!

Really, the last few times I've passed, including twice today, it's been totally devoid of any workers.