Central Group and CPN unveil Hongkong Land stake buyout in Central Embassy 2 plan worth over 83bn baht
The Bangkok venture plans to take full ownership of Central Embassy 2 and lease the existing mall for 30 years, excluding Park Hyatt Bangkok.
- Central Group and Central Pattana have announced a joint venture with an investment exceeding 83 billion baht to expand the Central Embassy complex.
- The project will add a new extension ("Central Embassy 2") with retail space, offices, and residences, increasing the total gross building area to 600,000 square meters.
- The joint venture, owned 51% by Central Group and 49% by Central Pattana, plans to acquire full ownership of the new extension by purchasing shares from the Hongkong Land group.
- The investment combines Central Group's international luxury retail network with Central Pattana's expertise in property development and management.
Central Group and Central Pattana announced plans for a joint venture to expand Central Embassy in central Bangkok, with total project investment exceeding 83 billion baht. The development would combine the existing luxury shopping centre with a new extension containing retail space, offices and residences.
Central Group would own 51% of the joint venture and Central Pattana 49%, bringing the partners’ retail and property development businesses together to manage the combined project.
The Central Embassy development would link two buildings with a combined gross building area of 600,000 square metres: 150,000 square metres in the existing complex and 450,000 square metres in Central Embassy 2.
Joint venture plans full ownership of Central Embassy 2
The Central Group–Central Pattana venture plans to acquire all shares held by companies in the Hongkong Land group in Central Embassy 2. The purchase would increase the venture’s ownership of the extension from 51% to 100%.
The Central Embassy joint venture would separately invest in 30-year leasehold rights over the existing shopping centre. Park Hyatt Bangkok is excluded from the venture’s investment.
The agreed price for Hongkong Land’s shares reflects the shareholders’ investment cost in the project. The Central Embassy venture also based its investment assessment on the potential of the valuable freehold location in central Bangkok.
Central Embassy revenue grows more than 10% annually
The existing Central Embassy shopping centre has recorded revenue growth of more than 10% a year over the past five years. Occupancy exceeds 90%, and luxury brands generate more than 50% of the mall’s rental income.
Central Embassy has operated for more than 12 years and has consistently generated profits and positive operating cash flow, the investment plan states. The partners cite this performance as supporting the property’s potential to deliver long-term returns.
Central Group combines luxury retail network with property expertise
Central Group intends the Central Embassy investment to expand its luxury business, combining its financial resources and international retail relationships with Central Pattana’s property development and management expertise.
Central Group’s luxury retail network extends across more than 18 countries and 140 cities in Europe and other markets. Central Group is also a strategic partner of major international luxury brands.
Central Pattana would contribute experience in developing and operating luxury shopping centres, including Central Phuket, to the development and management of the expanded Central Embassy complex.
