The firm is in negotiations with a Malaysian investor who has a long-lease contract to develop nearly 100 rai of land as a free-trade zone in the Thanaleng area of the Lao capital.

The company's managing director, Worapol Weerachatyanukul, said the company has a strong interest in investing in Laos after UD Town, an open-air shopping centre in Muang district, Udon Thani province, has its grand opening on November 23.

He added that if the company concludes a deal to develop land in Thanaleng, it estimates an investment budget of between Bt300 million and Bt400 million will be needed to develop a mall like UD Town on at least 25 rai.

"We have to take time before making a decision to invest because we have to study the Lao legal system and potential for investment. However, this has potential to be our next project investment after UD Town starts operations this year," he said.

The company is also negotiating with the State Railway of Thailand (SRT) to develop agency land in Nong Khai into a community mall.

Worapol said that the project in Nong Khai is still being negotiated and may be concluded next year.

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 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.

The company estimates its revenue will reach Bt150 million in the first year of operation, generating a return that will cover its investment within three years, he said.

He added that Vientiane would be the host for the next years SA Games from December 9-16. The company believes UD Town can benefit from this event by joining with SRT to launch a special route from Taleng station in Vientiane to UD Town.

Worapol added that the company also has plans to develop a hotel on the land to close to UD Plaza in the next three years.

"We are negotiating with SRT to lease between five and six rai close to UD Town and Plaza to develop a hotel which will have about 100 rooms. We will invest at least Bt200 million, but this investment will start three years from now. We have to wait and see whether demand in the tourist market recovering," he said.

Worapol has undeveloped land of nearly 300 rai in Udon Thani, which may be developed into an industrial estate or residential project.

"We will develop project by project. This will take between three and five years to develop," he said.

http://www.nationmultimedia.com/2009/07/27/business/business_30108368.php