Loxley expect to regain capital in IT mall investment in 3 years

The trading company Loxley Plc confident it can break even 100 million baht investment in poured in in transforming its old headquarters building in Suapa, adjacent to Bangkok’s Yaowarat district,into a big IT mall within three years time.

Suroj Lamsam, managing director of Loxley Property, a subsidiary of Loxley Group, said the IT Mall at VM Building covering 3,000 square metres will serve as a centre for full option wholesalers for IT and telecommunications products.

Suroj revealed one principal key to the mall near Chinatown is its proximity to Khlong Thom, Bangkok’s biggest and oldest black market for retail and wholesale pirated IT goods and second-hand goods, because the purchasing power of locals is high.

The managing director said VM Building was renovated from the old five-storey Loxley headquarters and office building.

He explained VMVK Services was contracted for three years to develop the old building into an IT and telecom shopping centre.

He added the first phase will open in the middle of this month covering the entire second floor and mezzanine.

The other floors will open at the end of this year.

It is said that the spaces in the first phase were sold out to more than 100 shops within a few weeks after its launch in March.

The remaining space in the second phase will be open for booking at end of this year, he said.

Revenues from rentals in the first phase amount to 3 million baht a month and when the remaining floors open, the company expects to break even in three years, he said.

Kullawat Viratmalee, managing director of VMVK services and the developer of the building, said rents were between 2,000 and 7,000 baht per square metre.

Even though rent is 20% higher than in adjacent buildings, the convenience and comfortable environment make retailers and wholesalers willing to pay, he said.