An artist's rendition of Ease Park, a new community mall with a lettable area of 4,800 square metres worth 200 million baht, which KAN Property will open in December.
New developer KAN Property Co plans to spend 450 million baht to build a community mall and three low-rise residential projects on Ram Intra Road during 2016-18.
Managing director Tatchai Silphiphat said as a new and small developer, the company would focus on small-scale residential projects to avoid competition with large developers.
"They [large developers] will develop residential projects on plots larger than five rai but we will focus on a plots sized around two or three rai, where around 20 townhouse units can be developed," he said.
Next year it will develop a townhouse project worth 70 million baht in the Ram Intra area with some 10 units priced from 5 million baht.
The developer will launch two other projects in 2018, also in the Ram Intra area.
Residential development will be the company's main focus but its first project will be a community mall, Ease Park, as the plot where it will be located is owned by the family and a lease contract with a former tenant ended two years ago.
The project, which will be industrial style, will be located on a 3.5-rai site on Ram Intra Road worth 200 million baht, comprising three storeys and a lettable area of 4,800 square metres at monthly rents of between 300-900 baht per sq m.
"There are a few community malls on Ram Intra Road where traffic congestion is heavy," said Mr Tatchai. "Our project will target people living within 3-5 kilometres of the site."
Set to launch in December this year, the occupancy rate is currently 80%. It expects to break even in seven years and aims to generate 40 million baht in revenue from rents in 2017.
According to property consultant Colliers International Thailand, the total area for community malls in Bangkok is 1.16 million square metres, accounting for 16% of total retail supply as of the first half of this year.
Krisana Udompitayaphumipicharn, managing director of community mall consultant Okasma Co, said community malls had grown exponentially over the past five years, driven by the city's expansion.
"The key factors for a successful community mall include a good location, targeting the right end-users, knowing their needs and designing components to match the lifestyle of the target group," she said.
KAN Property was founded in 2014 with registered capital of 5 million baht.
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