Monday, August 26, 2019

CPN sets Bt60 bn for new malls

Aug 25. 2016
Preecha Ekkunakul, president and CEO of Central Pattana Plc, presents the company
Preecha Ekkunakul, president and CEO of Central Pattana Plc, presents the company
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By KWANCHAI RUNGFAPAISARN

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CENTRAL Pattana has earmarked Bt60 billion for the development of shopping complexes between this year and 2018 in five local and foreign locations, including Mahachai in Samut Sakhon and Kuala Lumpur in Malaysia, its first overseas project.

The three-year plan will increase its shopping centres from 30, including the latest mall that opened last month in Nakhon Si Thammarat, to 34, and its retail space from 6.7 million square metres to about 8 million.

Of the five new shopping malls, three will be CentralPlazas in Nakhon Si Thammarat, Nakhon Ratchasima in September next year, and Mahachai in the third quarter of next year.

The Central Phuket complex is set to open in December next year with a 10,000sqm aquarium, which is claimed to be the largest in the country.

The Bt8.5-billion Central i-City complex in Kuala Lumpur is scheduled to debut in 2018. The project is a joint venture with I-Berhad, a real-estate developer in Malaysia.

Of the capital-expenditure budget, Bt13.2 billion will go to the renovation of five malls over the period. The properties are CentralPlaza Pinklao, CentralPlaza Bangna, CentralPlaza Pattaya, CentralPlaza Rama III and CentralWorld.

The major facelift will bring them into the modern age and add new innovations to intersect with people’s changing lifestyles, CPN says.

Preecha Ekkunakul, president and chief executive officer, said yesterday that CPN, which has been in the business for almost 36 years, was becoming the leading retail developer with the highest value in Thailand’s commercial-real-estate market.

With a vision to start developing shopping malls in areas across the country, CPN has managed to open the most retail centres in the nation.

“The key success factors are our vision to be a pioneer in developing retail complexes in all locations with potential and making new innovations and changes to society,” he said.

“We also have strong experience in retail development and long relationships with our business partners.

“We also have a clear view of the real demands and requirements of our customers. This allows us to create shopping malls that respond well to any changes and the ever-changing demands of shoppers.”

The Mahachai retail project has been launched at a cost of Bt4.75 billion.

“We have seen great potential in Mahachai for the development of our shopping complex.

“The city is a gateway to the south of Thailand with strong GDP per capita at Bt359,000 per year, which is the sixth-largest of the country,” Preecha said.

Many manufacturers, particularly seafood processors, have invested in Samut Sakhon. The expansion of Bangkok is going towards that province.

Occupying a 100-rai (16-hectare) site on Rama II Road, CentralPlaza Mahachai will offer 170,000sqm of retail space with a 10,000sqm food centre, including an urban seafood market.

The Central i-City retail project in Kuala Lumpur will be CPN’s pilot project for further overseas investment. It is strategically situated in Malaysia’s mega-project area, which is being touted as a world-class business district and a shopping and lifestyle hub.

The retail complex will open in 2018.

“Besides Malaysia, we’re considering other countries in Asean for our retail developments, including Vietnam and Indonesia,” he said.

CPN targets 15-per-cent growth in revenue this year from Bt26 billion last year.

The company has seen optimistic signs in the first six months of this year, with foot traffic at its shopping malls jumping by 6-10 per cent depending on location.

 Many retail tenants also posted better sales in the first half of this year.

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