Future Park Property Fund returns 9.6%

The Future Park Property Fund produced a return of 9.6 percent in the first quarter, one of the highest among property funds, as investors look for winners amid the low interest-rate environment.

Pimpaka Wanglee, managing director of Rangsit Plaza, which operates the Future Park Rangsit department store, yesterday said that lower interest rates had benefited the fund enormously.

The department store's rental rates have also shown continual growth with low risk, she said.

The property fund invests in the Future Park Rangsit department store, which has an area of 52,573 square metres. It also rents out 48,190 square metres of space.

The target net asset value of the fund this year is about Bt12.06 per unit, Pimpaka said.

She said a clearer economic situation should boost consumer confidence, which will help the retail industry to recover in the second half of the year.

Pimpaka said the Bank of Thailand had already reduced its policy interest rate four times this year, by a total of 150 basis points to 3.5 per cent. If there is a general election at the end of the year, the overall sentiment of the financial market and investment will improve, she added.

"The retail sector grew slowly in the first quarter compared to the same period last year at only 4-5 per cent, due to unexpected events including the [New Year's Eve] bombs in Bangkok.

"But the situation will improve in the second half of the year," Pimpaka said.

She said Future Park Rangsit department store's sales were likely to grow by 6-7 per cent this year, which is close to last year's figure, as overall economic growth is expected to be quite low.

The number of shoppers visiting the store has increased by about 4 per cent, due mainly to promotional campaigns run since early in the year. There are currently about 130,000 customers a day.

The company has also installed a CRM (customer relations management) programme and a customer focus team to oversee customer behaviour and improve the store's shops.

Source: The Nation
Thursday June 14, 2007