The retail property development arm of Central Group, Central Pattana Plc (CPN), announced that it will develop a total of 20 residential projects by 2022, according to media reports. The move comes as it looks to find new ways to branch out from shopping malls and open sustainable revenue in the long term.
The company plans to develop all types of residential projects between 2018-2022 including condominiums and townhomes. CPN only recently started developing residential projects as it looks to diversify its holdings which mainly consist of shopping complexes at the present time.
“Although CPN is a new player in the residential development business, we have seen a successful performance in each project we have launched because they are all located in prime locations,” says an unnamed executive to the Bangkok Post.
CPN has already launched 3 residential projects in 2017. They are in Chiang Mai, Chiang Rai, and Nakhon Ratchasima respectively and worth THB2 billion combined. The company is also planning to transfer units at condo developments in Chiang Mai, Khon Kaen, and Rayong sometime next year.
In 2018, the company expects property development to contribute 7 per cent to its overall revenue while this figure could rise to 10 per cent if CPN were to develop the 20 projects it has planned by 2022. The company is ready to invest THB1.7 billion to develop additional residential projects next year. It will spend THB2.6 billion in 2019, THB3.2 billion in 2020, and THB3.5 billion in 2021 on residential development.
The company is also committed to continue its development of shopping centres in Thailand despite the sluggish economy which has hurt the retail market in general, says CPN chief executive Preecha Ekkunagul. CPN has THB10-15 billion ready to develop and renovate existing projects in the coming years. It will also open 2 new retail centres in 2018.