Heritage revamps Sathon office space

Glowfish Sathorn Lifestyle Workplace will have collaborative spaces to accommodate SMEs.

Heritage Estates Co Ltd, a real estate investment company owned by the Vongkusolkit family, has spent 600 million baht to acquire and renovate 4,000 square metres of office space for rent at the Sathorn Thani Building.

Managing director Gavin Vongkusolkit said the Sathorn office space will be the third serviced office branch under the company’s Glowfish brand, targeting new-generation entrepreneurs.

“The new generation looks for a workplace with flexible work hours where they can work, play and grow, as work-life balance is their lifestyle,” Mr Gavin said. “They also prefer an office in the central business district near the skytrain. These locations are our target.”

The company invested nearly 500 million baht last year to buy 4,000 sq m of office space from Standard Chartered Bank on the second and eighth floors of the Sathorn Thani Building near Chong Nonsi skytrain station.

An additional budget of 100 million baht was used to renovate the spaces into serviced offices sized between 10-35 sq m, 50 units of collaborative space and five meeting rooms for 5-10 persons each.

Opening on Sept 1, Glowfish Sathorn Lifestyle Workplace will have average rental rate of 11,000 baht per sq m per month for service office. The space is now 28% booked.

There will also be a 400-sq-m area for events with a capacity of 400 people standing or 200 seats. Rent will be 80,000 baht per day.

The first Glowfish office was at Asoke Towers with 5,500 sq m, starting in 2011 with a current occupancy of 80%. At the tower, Heritage Estates has a total office space of 11,000 sq m at 15 floors for rent.

The second serviced office was at Centerpoint of Siam Square where the company has rented 1,000 sq m for 10 years since last year. Occupancy is now 100% as it is a prime location.

“We are not competing with co-working space operators as they target startups. We target established SMEs,” said Mr Gavin, the 35-year-old son of Isara Vongkusolkit, chairman of No.1 sugar producer Mitr Phol Group.

He said co-working space businesses have become more difficult to profit from, as there are currently many large firms that sponsor startups and offer free co-working space.

Currently, around 30% of Thai populations are Gen Y people or millennials. This group prefers being an entrepreneur and wanting to have their own business. Some are not just startups but strong and innovative SMEs, Mr Gavin said.

“We eye to expand serviced office business in Vietnam and the Philippines within the next two years as our family has businesses in these two countries which can help us start businesses there more easily,” he said.

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