Central Pattana branching out into four ASEAN markets

The company is allocating Bt1 billion for the opening of the first two malls over the next two years.
The expansion will be undertaken through joint ventures with local investors in each country.
Meanwhile, chief financial officer Naris Cheyklin yesterday said the company’s allocation of capital-increase shares to foreign funds, especially those in the Middle East, via private placement had received strong interest from retail investors wanting to cash in on the open-market environment when the Asean Economic Community (AEC) comes into effect in 2015.
Central Pattana reported to the Stock Exchange of Thailand that 60 per cent of the 130.36 million new shares, priced at Bt50.75 apiece, were being allocated to foreign investors and the remainder to local investors.
The company will raise more than Bt6.5 billion from the private placement, the statement said.
Central Pattana’s stock price yesterday gained 0.46 per cent to close at Bt54.25.
Naris said investment funds in Abu Dhabi were among the Middle Eastern investors interested in the new shares.
“We have seen investment funds from the Middle East starting to invest in our shares, which is positive feedback from our road show in the region. Those foreign investors have seen that retail business will benefit from the implementation of the AEC, so they want to invest in this sector. We also want to take our road show to other markets, as we want our investors to be more varied,” he added.
Naris said that after selling the capital-increase shares, the company expected the proportion of its free-float shares to increase to 50 per cent.
The developer has no further plan, however, to mobilisation funds in the capital market over the next two years, regardless of the size of its investment projects, he stressed.
Some of the funds raised from the private placement will be spent on the development of new mall projects on Koh Samui in Surat Thani province, and in Salaya, in Nakhon Pathom province. Both malls are scheduled to open next year.
The funds will also be used for this year’s domestic investment plan, under which the company will invest Bt13 billion in shopping-complex projects.
The company will also borrow from local financial institutions and its Retail Growth Fund, and is also considering set up a fund to support the investment in its department store in Chiang Mai, he said.
As for the overseas investment plan, he said the company next month would conclude a deal with local partners to open a shopping mall in Malaysia, the cost of which is expected to be about Bt5.8 billion.
The company will invest about Bt3 billion in the project from its cash flow and borrow an additional Bt1 billion from local banks.
Plans to set up joint-venture shopping malls in Indonesia and Vietnam should be finalised by the end of this year, said the CFO.