CPN JV to develop mall in Malaysia
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Selangor facility to serve Asean region
Central Pattana will develop a regional shopping mall in Malaysia through a 60:40 joint venture with Malaysia-based I-City Properties as a step towards becoming a retail leader in Asean.
“We believe that ICP’s expertise in construction management as well as local market understanding and strong government relations will greatly contribute to the success of this project,” Kobchai Chirathivat, president and chief executive officer of CPN, said yesterday.
“In the same way, CPN will contribute our expertise in retail property development to make this project a great success, as we are recognised as a leader of retail property management and development in Thailand with a portfolio of 21 leading shopping malls,” he said.
This important decision reflects CPN’s first strategic move in Asean and its confidence in Malaysia’s economy, he said.I-City Properties is a wholly owned subsidiary of listed I-Berhad. CPN will hold its stake in the JV through its local subsidiaries.
The 580-million ringgit (Bt5.7 billion) property will be located on an 4.5-hectare freehold site at i-City in Shah Alam, the capital of Selangor state.
“CPN is excited to have an opportunity to invest in this dynamic and exciting country particularly in Shah Alam, which has a population of over 600,000 and a rapidly growing middle class,” he said.
The company will lead in the design, development and management of the shopping mall, which will serve as a lifestyle destination for shopping, entertainment and community gatherings in west Selangor. It will have gross floor area of 138,000 square metres and net leasable area of 89,700sqm.
CPN will bring in differentiation to Malaysia’s retail industry while ICP will help adapt and apply CPN’s expertise to respond to the needs of the local market and consumers. Construction is expected to commence next year with completion by the end of 2016.
Bt50-bn plan
This is part of its business plan to launch 12 shopping centres worth Bt50 billion in Thailand and Asean from this year to 2017.
Kobchai has said CPN is interested in entering Malaysia, Vietnam and Indonesia because of their bigger population and purchasing power compared to other countries in Asean.
ICP is the developer of i-City, a township with a shopping mall, cyber-centre office suites, corporate towers and hotels along with residential and retail components on a 29-hectare freehold site along Federal Highway.
