MBK outlines three-year development budget

MONDAY, APRIL 25, 2016
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MBK outlines three-year development budget

MBK YESTERDAY announced an investment budget of between Bt5 billion and Bt6 billion for the next three years to focus on existing and new developments of its core property businesses, comprising its shopping centres and housing estates.

Chief executive officer Suvait Theeravachirakul said MBK had Bt3.8 billion cash in hand for future expansions.
About Bt2 billion will be invested this year, of which half will be for construction of a new facade and skywalk at the MBK complex on Rama I Road in Bangkok. Another Bt1 billion will be allocated to the group’s new housing projects in Bang Kadi, Pathum Thani – Park Riverdale and Riverdale Residence. 
The Park Riverdale will contain about 70 housing units, selling at between Bt5 million and Bt10 million each. Meanwhile, the Riverdale Residence project will contain 50 housing units at between Bt30 million and Bt50 million each.
Suvait said the group by the end of this year would also develop a |new low-rise condominium project close to its The Nine shopping mall on Rama IX Road. Costing about Bt1 billion, the eight-storey condominium will contain 420 units| selling at no more than Bt3 million each.
“Next year we will develop a new 400-unit high-rise condominium at Sukhumvit Road Soi 101. It will |have more than 30 storeys and cost about Bt1.5 billion. Their selling price will be between Bt160,000 and Bt170,000 per square metre, which is at the same level as competitors in the area,” he said.
Suvait said MBK would focus on three core businesses, which the group calls its “crown jewels” – shopping centres, real estate, and financial businesses.
“We have set aside about Bt4 billion for the renovation of MBK |shopping centre that started last year. 
About Bt1 billion each has been spent last year and this year, and the remaining Bt2 billion will be spent in 2017 and 2018,” he said.
He said MBK had also consolidated all back-office activities into a central support unit to provide shared services to the rest of the group.
“We will focus on strengthening our corporate branding and corporate-social-responsibility activities. Our aim is to contribute sustainable benefit to our shareholders,” Suvait said.
“MBK will also focus on the development of human resources, which has been recognised as the group’s core competency, to comply with its future growth plans.” 
MBK posted Bt12.2 billion in |revenue last year, up 21 per cent |over 2014. About 34.1 per cent was from the group’s shopping-mall business, 10.3 per cent is from hotel business, and 3.8 per cent from golf business. 
About 18.2 per cent of the revenue was from real estate, 21.4 per cent from food solutions, and 11.8 per cent from financial business. 
The group also posted about Bt1.8 billion in net profit last year, up 20 per cent from Bt1.5 billion posted in 2014.
“We expect to increase our revenue by between 5 and 10 per cent this year,” Suvait said.
He said the group would stick to its brand DNA, “MBK Passion”. M is for “memorable”, or creating happy memories for its customers; B for “best friend”, or being someone who truly understands and is ready to help; K for “keys” or providing solutions for every need; and “passion” is providing heart-felt service to clients. 
The brand DNA will be integrated in all products and services to make MBK unique.
 
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