Thursday, August 22, 2019

Unfazed CP Land ready for estate project in EEC , expands Thai investments  

Mar 31. 2019
Sunthorn at the press conference on the opening of the company's latest hotel, Grand Fortune, in Nakhon Si Thammarat.
Sunthorn at the press conference on the opening of the company's latest hotel, Grand Fortune, in Nakhon Si Thammarat.
Facebook Twitter

By Somluck Srimalee
The Nation
Nakhon Si Thammarat

9,026 Viewed

CP Land Co Ltd, the property arm of Charoen Pokphand Group, remains firm on its Bt6-billion plan to develop an industrial estate in the Eastern Economic Corridor (EEC).

The company is confident that the next government will continue development of the mega-project, aimed at attracting local and international investors, said Sunthorn Arunanondchai, chief executive officer of CP Land. 

The company will start infrastructure work at the site this year, at a cost of Bt1 bilฌlion, followed by Bt5 billion in construction between 2020 and 2022.

Separately, a Bt4billion electric power plant will be built on the site, he added. 

The industrial estate will focus on SCurve industries such as green technology, environmentally-friendly electricity generation, medical supply, electric cars, digital equipment, and food processing, Sunthorn said.

A Bt3-billion investment budget has also been allocated for its six business units assigned with the development of residential, office, hotel, energy, property management and convention centre projects.

For residential properties, the company plans to launch 600 units nationwide, worth a total of Bt1.2 billion. 

Six hotels, costing a total of Bt1.2 billion, will be launched this year in Buri Ram, Phitsanulok, Samut Sakon, Mukdahan, Khon Kaen and Rayong provinces. Offering a combined 600 rooms, the new properties will boost the company’s inventory from 2,000 to 2,600 rooms at the end of 2019. 

The Bt600million balance from the Bt3billion budget is earmarked for an office building on North Park Vibhawadi Rangsit Road in Bangkok as well as investments in its energy, convention centre, and property management businesses. Following the investments, the company expects to maintain its 2019 net profit at last year’s level of Bt900 million. It posted a 12.5-rise in net profit in 2018, from Bt800 million in 2017. 

“We expect little change in net profit this year amid declining demand for residential units, due mainly to public concerns over the Bank of Thailand’s new measure on mortgage loans. The loan-to-value directive constrains the purchasing power of prospective homebuyers,” he said. 

However, the company expects recurring income from its hospitality, office, and convention centre businesses to make up for the shortfall in residential sales, towards the net-profit target for 2019. 

This year, the company will have 11 hotels under its wings, offering a total of 2,600 rooms. The property in Bangkok posts an average occupancy rate of 90 per cent compared to 60 per cent for its hotels in the provinces. The latest hotel to open on Saturday was the Grand Fortune in Nakhon Si Thammarat province, targeting the tourism and seminar markets. The new hotel has posted an occupancy rate of 50 per cent. 

The company has three office buildings in Bangkok with an average occupancy rate of up to 98 per cent, compared with up to 60 per cent for the 10 properties in the provinces. It also has 225,000 square metres of office space for rent nationwide. 

Meanwhile, the company’s property management unit currently manages 500,000 square metres of space, of which close to 50 per cent are owned by CP Land. 

In energy generation, the company operates a solar electricity facility with a capacity of 990 kilowatts in Khon Kaen province. It plans to increase the production capacity for alternative energy to 50 megawatts in 2021 by focusing on renewables. 

The company is also interested in branching out into energy-related segments including energy management system audit, electric vehicle charging station, and energy service. An announcement on the plan will be made, he said.

“We are confident and will continue to expand our business in the country. Regardless of who forms the new government, we believe it will continue the policy of growth given the Kingdom is the hub of investment in the region,” Sunthorn concluded. 

 

Tags:
Facebook Twitter
More in Business
Editor’s Picks
Top News