Wichai Poolwora-luk has diversified his business interests from showing films to developing high-rises by constructing a mixed-use project worth Bt4 billion on the site of a former theatre.
The complex will feature two condominiums, a hotel and serviced apartments on 10 rai of land at Sukhumvit Soi 69, near the Skytrain's Phra Khanong station.
After Wichai sold EGV Entertainment to Major Cineplex Group in 2005, he changed the name of his family's firm from Chaopraya Theatre Co to Woraluk Property. Last month he increased its registered capital from Bt5 million to Bt100 million.
Wichai - who owns 100 per cent of Woralux Property with his father and serves as its president - said yesterday that the company had started its expansion by launching its first multi-use complex.
Of an investment budget of Bt3 billion, Bt2 billion will be borrowed from Kasikornbank and Bt1 billion will be generated from cash flow.
Construction will start in the second half of this year and should be completed two years later.
Pre-sales for the first condominium, named the LeLux, kicked off this month, with 170 out of the total 286 units already booked.
The reserved units account for Bt500 million of the project value of Bt1 billion. The second condominium, set for launch in the second half, will target the middle to upper market by offering units priced from Bt2 million to Bt10 million.
"Woraluk Property will be our new business arm after EGV Entertainment merged with Major Cineplex two years ago," Wichai said.
"The real-estate market is still active even though the economy is limping along, so the family is interested in redeveloping our older theatres into housing and other products such as office buildings, hotels and serviced apartments."
Now that he has more time, he has decided to move into the property market.
"We have enough land in Bangkok and upcountry to develop more projects according to market demand. We believe that after we expand our business from theatre operator to developer, we have
the potential to be the market
leader in this sector in five years," he said.
However, he declined to disclose how much land he has ready for development within the five-year timeframe.
The Poolworaluk family is the oldest operator in the country's movie theatre industry. Its has more than 1,000 rai of land in Bangkok and throughout the country.
Wichai said that although he lacked experience in the property market, he had a good ally in Harrison Plc, a brokerage and property agency, to provide advice to the company and also manage its projects.
"When we expand into a new area, we have to find a strategic partner with more experience in the business. That will help our new business compete with other properties in the market," he said.
The company expects Bt100 million in revenue for its first year of operation, coming entirely from pre-bookings for LeLux.
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