CPN growth unaffected by political situation

The listed company remains on course to achieve business growth of between 18 and 19 per cent this year, said Naris Cheryklin, the company’s senior executive vice president for finance and accounting, property, sales and marketing.
Central Pattana has, meanwhile, posted revenue of Bt10.72 billion and net profit of Bt3 billion for the first half of the year. The third quarter will show stronger growth than in the first six months, he added.
“We believe the political problem will be over by the end of this month, and that it will have little impact on the confidence of those visiting the company’s shopping centres,” he said during a press conference announcing an increase in the capital of the CPN Retail Growth Leasehold Property Fund (CPNRF).
The company plans to increase CPNRF capital from Bt15.76 billion to Bt25.52 billion by issuing Bt11.56 billion of new capital based on the estimated value of Central Plaza Chiang Mai Airport – the new asset to be sold by Central Pattana to the fund.
The additional capital will be raised from the market in the middle of next month via a rights issue for existing shareholders to purchase about 0.34 of a new share for each share currently held. The purchase price will be between Bt14 and Bt19 per unit, depending on the market price at the time of the rights issue.
The CPNRF currently owns three shopping malls: Central Plaza Pinklao, Central Plaza Rama 2 and Central Plaza Rama 3. The fund, in which Central Pattana holds 28 per cent, generates an average yield of 7 per cent a year.
“We will generate income of about Bt10 billion from the new issue, which will be spent on investment next year that requires about Bt13 billion and Bt14 billion to develop our new shopping centres in Thailand and Malaysia over the next year,” said the executive.
The company’s business plan is to open three new malls next year. Two will be in Thailand, in Bang Yai (Nonthaburi) and Salaya (Nakhon Pathom), and the third will be Central Pattana’s first shopping centre in Malaysia.
“Our plan to invest in Indonesia is at the study phase. Our main overseas focus now is Malaysia,” Naris said.
Next year, the company targets business growth of at least 15 per cent, with about half coming from existing shopping centres, which will increase rental rates by between 7 and 8 per cent. Its new malls are expected to contribute the remainder.
“We believed our shopping malls will continue to post strong growth next year, from both domestic consumption and foreign tourists,” he said.