Gaysorn Property, a prominent luxury developer, anticipates a significant revenue boost of 50% to 1.3 billion baht this year with the opening of Gaysorn Amarin, previously known as Amarin Plaza, involving an investment of 1 billion baht.
According to Charn Srivikorn, the company’s chairman, 75% of the retail space spanning 17,600 square meters has already been contracted. Further negotiations with two new brands could elevate occupancy to 80%.
Following renovations, the retail space at Gaysorn Amarin has been slightly reduced but commands higher rents, transitioning the property from grade C to A-. This shift is expected to yield a 30-40% positive rate of return, allowing for a 50% increase in rental income.
With the office space at Gaysorn Amarin expanding to 24,000 square meters and boasting a current 75% occupancy rate, most tenants comprise service-based businesses, consultants, and beauty brands.
Upon the full launch of Gaysorn Amarin this month, the company foresees achieving a total revenue of 1.3 billion baht by the end of 2024, a substantial 50% surge from the previous year, primarily driven by Gaysorn Village and Gaysorn Tower’s operations.
Looking ahead to the following year, post a full year of Gaysorn Amarin’s operation, revenue is estimated to rise to 1.5 billion baht from the three towers, collectively offering a combined office space of 50,000 square meters and retail area of 40,000 square meters, with a total valuation of 20 billion baht.
Currently, the three towers witness a daily footfall of 70,000-80,000 visitors, showcasing an increase from 40,000-50,000 during the pandemic. Approximately half of these visitors are international tourists hailing from China, Japan, the Middle East, India, Europe, the US, and other ASEAN countries.
Mr. Charn stated that the anticipated break-even period for the renovation is within five years, during which a minimum occupancy rate of 90% for both office and retail spaces is envisioned.
Gaysorn Amarin is strategically located on freehold land owned by the Srivikorn family, renowned as one of the largest freehold landlords in the Ratchaprasong area.
Established in 1982, the family initially leased the plot to the founders of Amarin Plaza, later known as The Erawan Group in 2005. Subsequently, focusing solely on the hotel sector, The Erawan Group approached Gaysorn Property to purchase the property before the 30-year lease expired in 2015.
The property has attracted several luxury and watch brands, with renowned names like Louis Vuitton opening concept stores at Gaysorn Amarin, alongside establishments such as Lawry’s The Prime Ribs, Ryoan Cosmetic, Dough Bros Pizza & Doughnuts, and Raynue making their debut in Thailand.
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