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B5bn complex launched

The zinc oxide manufacturer and listed property developer Univentures Plc yesterday launched a 5-billion-baht hotel and office complex targeted at the office rental market, said its president Ornruedi Na-Ranong.

The 33-storey Park Ventures, on a five-rai plot at the corner of Phloen Chit and Witthayu (Wireless) roads, will cover 81,400 square metres - 28,000 sq m for office space, 25,615 sq m for a six-star hotel and the rest for retail outlets. Construction is due to be completed in 2011.

"Office space in Bangkok's central business district has increasingly become scarce. About 80% of grade-A supply has already been committed," Ms Ornruedi said. "It is a good opportunity to invest now as we want to generate long-term revenue from rental and property sales."

According to CB Richard Ellis research, about 250,000 sq m of grade-A office space was available in Bangkok in the fourth quarter last year.

Last year the slump and political turmoil slowed business expansion leaving room for Univentures to invest in the office rental market, said Ms Ornruedi.

The average rent for grade-A office space in the central business district (CBD) was flat last year at about 740-750 baht per sq m. But this is a substantial rise from less than 400 baht per sq m in 2000, so the company is confident prices will rise in a few years, when the economy is expected to pick up.

Rent for office space at Park Ventures is expected to be about 800-850 baht per sq m.

The company will lease the 25,000-sq-m hotel area, containing 245 units, and TCC Land would take responsibility for decoration and organising its management.

Univentures' major shareholder is Adelfos Co, owned by Thapana Sirivadhanabhakdi, the eldest son of liquor tycoon Charoen Sirivadhanabhakdi.

Univentures hopes to generate annual revenue of 300 million baht from office rental and 1.4 billion baht from hotel leasing to TCC Land. It is currently seeking a 2-billion-baht loan for the project.

The company plans to further engage in property development through its subsidiary Grand Unity Development Ltd.

Shares of Univentures (UV) closed yesterday on the SET at 1.16 baht, up 10 satang, in trade worth 12.1 million baht.