Central Group announced plans to develop four to five new projects over the next three years as part of its plan to increase its annual revenue growth by 15 percent between now and 2021. The new projects will be built in Bangkok and other major cities. These new projects do not include those already planned for Phuket, Nakhon Ratchasima and Nakhon Si Thammarat.
Financing for the new projects will come from operating cash flow, bond issuance and/or project financing and property funds. Central operates 26 shopping complexes throughout Thailand with a majority in Bangkok as well seven office buildings and some residential buildings.
“CPN still aims for further expansion in major economic cities, as well as locations with potential business both in Thailand and neighbouring countries to demonstrate its sustainable growth,” chief financial officer Naparat Sriwanvit said.
Central has partnered with local investors in Malaysia to form a joint venture that is aiming to develop a new shopping complex there for THB7.4 million. The company is also conducting a feasibility study on market potential in Vietnam and Indonesia.
Naparat added that Vietnam has a large population, low competition with a few major players and strong growth in disposable income, but low purchasing power. She noted that Indonesia has a large population and rapid middle-class growth with increasing spending power. The market is sophisticated, but strong competition from existing players, the high cost of funding and unrealistic land prices with insufficient infrastructure limit the market potential.
If Central does decide to build malls in both countries it is will most likely be through joint ventures. Central expects to open two to three large shopping complexes abroad over the next five years. Back at home, the company’s newest mall is Nonthaburi’s Central Plaza West Gate in Bang Yai district.
Image: CentralPlaza Nakhon Si Thammarat
