Gaysorn expansion on hold

Gaysorn Plaza

Gaysorn Plaza

Cost outlook good but economy a concern

The developer of the Gaysorn complex will reconsider the timeline for its multi-billion baht residential and retail investment next to its luxury shopping centre due to economic uncertainties.

Gaysorn Land Asset Management is reviewing the planned residential and retail project with 40,000 square metres and 40 floors to be built on the plot that used to house the Narai Phand handicraft centre, said director Chai Srivikorn.

Earlier, the company had planned to start developing the residential and retail project by the end of next year but now it is not as confident that it is suitable to invest as planned originally.

“It may be good for us to start our new development next year because the trend of construction costs is continuing to decrease,” said Mr Chai, who is also the president of the Ratchaprasong Square Trade Association (RSTA), which groups the major retail operators in the capital’s best-known shopping centre district.

For example, he said, the price of steel has fallen to 16 baht per kilogramme from 38 baht at the start of the year.

“We need to evaluate how much impact Thailand might feel from the current global financial crisis, which is expected to be worse than the 1997 Asian crisis. After that we will consider for the new suitable timeline of the new project,” Mr Chai said.

He said Gaysorn was talking with at least five foreign business partners about possible co-operation on the new development but no decision on a deal has been reached yet. Earlier reports said that the American property billionaire Donald Trump was among those interested in the venture.

Mr Chai said that Gaysorn wanted to create a new project aimed at a niche market, particularly on the retail site. over three years.

“Customers would have a shopping experience that is different from the current Gaysorn. The new retail outlet will look like shopping complexes in Kowloon, Hong Kong” he said.

Apart from the plot adjacent to Gaysorn, the company is interested in bidding for the 10-rai site owned by the Crown Property Bureau just two blocks north, near Big C Ratchadamri, for its new property project.

“The government should speed up its investment in megaprojects and stimulate the private sector to invest in property by helping them with financing,” he said.

“This would help create a value chain in the country and increase the confidence of investors who invest in the country. The government should not wait until the wave of the foreign crisis comes to Thailand and attempt to solve the problem later.”

Despite economic and political uncertainties, Mr Chai said RSTA’s members continue to plan for a huge New Year’s Eve party at the intersection.

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About the author

Nina Suebsukcharoen Nina Suebsukcharoen
Nina Suebsukcharoen is a senior journalist with The Bangkok Post, Thailand's first English language newspaper and specialises in the property and real estate sector.
Other posts by Nina Suebsukcharoen ( 19 )

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