The group has sunk US$450 million into the mall, which is scheduled to officially open on October 18 with 85 percent of its space leased, said Thanakorn Seriburi, chairman of Shanghai Kinghill Ltd (SKL), a wholly owned subsidiary of the Thai conglomerate, Charoen Pokphand Group.

"Some Thai companies are showing interest in the mall, trying to buy some shares with their idle money," Seriburi said.

Some are thinking about using funds to help the mall pay its bank loans in the form of investment.

"We are considering the suggestion and conducting an auditing survey," Seriburi said.

Foundations, enterprises and individuals have been inquiring over the past several months about whether they can take part in the share-transferring investment.

"If there is a suitable partner, we will certainly consider the co-operation," Seriburi said.

But he stressed that the mall's business will continue even if no funds come from new investors as "we have enough cash flow."

The mall has bank loans of more than US$200 million, including US$163 million in loans from the Shanghai Branch of the Industrial and Commercial Bank of China and some from Thai banks.

"We know the mall will suffer from losses in the first three years but it is expected to break even business within seven years," SKL President Somkit Tan said.

Seriburi said: "If there is additional investment, we can pay the loans and reduce the interests. Thus, the mall will have better results."

But he added that the Chia Tai Group could possibly start other projects in Shanghai with money from new investors.

The mall, which suffered several postponements due to the Asian financial crisis, is the largest of 173 projects Chia Tai has invested in the Chinese mainland over the past 22 years.

"Chia Tai is full of confidence in the Chinese market with the focus placed on Shanghai," Seriburi said.

It also aims to open four more Lotus Supercentres and 7-Eleven stores.

The plan is part of its five-year US$1-billion investment programme, which was released by Dhanin Chearavanont, chairman of the Chia Tai Group's board, when he toured Shanghai last year.

"The Chinese market will account for a considerable part of it," Chearavanont said at last year.

Seriburi predicts the mall can earn US$40 million each year after it breaks even.

(China Daily Oct 8, 2002)