UD Plaza hopes to develop shopping mall in Nong Khai

[lee]

Udon Plaza hopes to develop SRT land in Nong Khai into community

Published on June 12, 2009

Udon Plaza, the developer and operator of UD Town in Udon Thani, is negotiating with the State Railway of Thailand (SRT) to develop the agency's land in Nong Khai into a community mall.

The negotiations are expected to be wrapped up after UD Town has its grand opening on November 21.

Udon Plaza managing director Worapol Weerachatyanukul said at press conference yesterday that the number of shoppers in Udon Thani and neighbouring provinces had grown strongly, especially visitors from Laos who can drive from Vientiane to Udon Thani province in just one hour. Moreover, the number of tourists and business persons visiting Udon Thani and neighbouring provinces averages 2.4 million a year.

These factors have convinced the developer to expand its investment after UD Town's construction is complete and it has its grand opening.

"Our investment in provinces neighbouring Udon Thani may start next year with a focus on Nong Khai, which is located close to Laos and will have easy transportation after the Thai and Lao governments further develop infrastructure to link the countries," Worapol said.

Worapol, who is also the exclusive handset distributor for Total Access Communication (DTAC) in 11 northeastern provinces, started to develop UD Town three years ago after signing a 30-year lease with the SRT to develop 25 rai of land located close to the station in Udon Thani.

Udon Plaza separated the land into two projects, with the first 11 rai developed as UD Bazaar and the remainder developed as UD Town. The investment cost Bt600 million, against the original estimate of Bt500 million.

Worapol said one-third of the funding was in the form of a bank loan and the remainder from the company's capital.

UD Town already has a booked occupancy rate of 80 per cent of the retail space of 13,000 square metres, with local and international brands such as Carrefour, McDonald's Drive Through, Minor Food Group (Swensen's and Dairy Queen), Lee, Wrangler and G2000 having made reservations.

The company expects the number of shoppers to average 25,000-30,000 a day, spending between Bt2,500 and Bt3,000 per head.

It targets rental revenue of Bt150 million for the first year of operation and believes the company's return will cover its investment within five years.

Worapol added that although Central Group would open a branch in Udon Thani this year, the company's revenue and shopper targets would be unaffected because UD Town had been designed under the concept of an outdoor shopping centre.

"We believe that when Central Group expands its business to Udon Thani it will create more business activity, which will be good for both of us.

Central's retail business in this location has the potential for growth, especially in terms of Lao shoppers," he said.

Source: Nation Mulitmedia
http://www.nationmultimedia.com/worldho ... -community

[old-timer]

The company expects the number of shoppers to average 25,000-30,000 a day, spending between Bt2,500 and Bt3,000 per head.

Is this a misprint?

[Aardvark]

What I don't understand is, if everything is cheaper in Laos why would people want to cross the border to shop in Thailand. As I understood it people only came from Laos to buy Luxury goods they can't get back home ???

[RALPHCUSENS]

What I don't understand is, if everything is cheaper in Laos why would people want to cross the border to shop in Thailand. As I understood it people only came from Laos to buy Luxury goods they can't get back home ???

Local fresh produce, is far cheaper in Laos, however, almost everything else, is imported,(predominately from Thailand) and is more expensive than in Thailand.

[bn]

The company expects the number of shoppers to average 25,000-30,000 a day, spending between Bt2,500 and Bt3,000 per head.

Is this a misprint?

I think they meant "2500-3000 a day, spending B250-300 per head."

Sadly, a bunch of locals will pay way too much key money based on these unrealistic numbers and after a few months half will be out of business. Just like Carrefour, nightmarket, Centrepoint, Hi-Tech, etc.

[FrazeeDK]

Lao come to Udon to shop because:

- the shopping in Nong Khai is limited
- Udon has Big C, Lotus, Makro, the Complex and numerous other stores
- Laos has zero similar stores. The only grocery store of any similarity is at Vientiane ITECH and it's produce is stale, it's meats primarily imported, selection totally limited, and prices higher than in Udon.

Since the Lao government regulaly whines about the huge outflow of cash from Lao to Thailand by Lao border shopers you'd think they'd encourage a Big C, Carrefour, MAKRO, or Tesco to open in Vientiane.. but, I imagine all the big boys up there want to big a slice of the pie.

[fatbas***d]

The company expects the number of shoppers to average 25,000-30,000 a day, spending between Bt2,500 and Bt3,000 per head.

Must have the same guy doing the volume estimates as Home pro and index used for their businesses in Udon.

[wazza]

U might see those attendance figures for the opening of Central Mall in Khon Kaen , for the first 3 months ??? Certainly the average spending of baht seems very rubbery.

I would like to see the business plans of those who looked at it and used their own figures to deceide if its a goer or not.

McD's will make money, Starbucks will also, Fuji, ummmmm, Chester Chicken ummmmmm

any new gold shop might, a high speed internet shop / travel agency might ?????

Whose going to be the brave Expat who opens up a nice nice bakery and cafe there

A Chern Chim opportunity ???

[BKKSTAN]

Confusing article to me!A NK development mentioned under the heading,but no mention of the type of stores in NK!As I read it ,the projected spending and key stores mentioned relates to Udon,not NK!

[BobHelm]

I would have thought a prudent businessman would..
1. Finish the project in Udon Thani.
2. See how the projected business stacks up against actuals after 6 to 9 months.
3. Decide if current Udon Thani project can stand to lose 30 to 50 % of its' current business.
4. Decide if another outlet 50kms away was still a good idea.....

[wazza]

Pump the numbers now for NK so he can sign them up, wont get off the ground in NK if UD town doesnt prosper or at least break even.

[trubrit]

I would have thought a prudent businessman would..
1. Finish the project in Udon Thani.
2. See how the projected business stacks up against actuals after 6 to 9 months.
3. Decide if current Udon Thani project can stand to lose 30 to 50 % of its' current business.
4. Decide if another outlet 50kms away was still a good idea.....

Now your being too logical.
I often wonder if these developements are a form of money laundering. Can't think they are really planned for profit.
Worthwhile thinking about, both plots of land are on lease from the railway !! :-"

[lee]

UD Bazaar beer garden/food court is doing very well as far as I can see.

[trubrit]

UD Bazaar beer garden/food court is doing very well as far as I can see.

Your quite right Lee. I am down there most weekends with my family and its always fairly busy. It didn't get off to a flying start and many of the original tenants gave up, but now they have erected some cover over the food area and reduced the rents it sems to have got a lot better. There are however a few, bar type places that seem to be permanently empty.

[laphanphon]

may have to test them out again, 1st time, a ways back was ok, and the get together we had one night was fine. now......parking??? selling motorbike, so that creates a problem. too bad no public transportation, one baht bus and i'm there, but hate to get scammed on the return trip, shame taxi mafia exist, doesn't do the vendors any favors. keeps me from the whole night market area lately, matter fact, rarely do dinners out anymore. late lunches for me.

[lee]

Parking's not the best in this area, however I've always found somewhere to park without too much hassle. There are usually free spaces at the back near the rail tracks and from there its only a short walk to the beer garden.

[trubrit]

Parking's not the best in this area, however I've always found somewhere to park without too much hassle. There are usually free spaces at the back near the rail tracks and from there its only a short walk to the beer garden.

Yes never have a problem in the area leading from the station, behind the big screen. Plenty of helpful security as well. Guiding you in, or out , after the beer.Mind you by then its the wife driving and she's now teetotal since her op.

[arjay]

Are we talking of a shopping mall in Nong Khai here, or the UD plaza in Udon??

[trubrit]

Are we talking of a shopping mall in Nong Khai here, or the UD plaza in Udon??

Well if you take time to read the heading it refers to the one in Udon about to extend its operation to Nong Khai Therefore in my book comments on both are appropiate But what would I know. I am not a mod.

[747man]

Have you ever tried FINDING a parking place in Tesco Nong Khai,Almost Immpossible after 10.30 am EVERYDAY,Especially at Weekends FULL of Laos registrations....Also I Believe to be correct that THIS Tesco is if NOT the BUSIEST In Thailand then VERY Close to it.....I got that way now that rather than STRUGGLE to get in there I go 30kms to the one at Thabo,Find parking NO Problem,But smaller store,hence smaller inventory.....but can get NEARLY Everything we need,Plus its a pleasant drive along the River Route.....