CP Land Plc is set to team up with Guangxi Construction Engineering Group, a large Chinese construction company, on an industrial estate project in Rayong, reports local media. The project will require an initial investment of THB10 billion. Guangxi Construction will be in charge of the construction of the project and will also take care of marketing it to Chinese investors.
“We have been waiting to develop an industrial estate for a long time. We want the best, a strong and heavyweight partner with a large business network, to help drive our industrial estate development plan,” says CP Land President and Chief Executive Sunthorn Arunanondchai to the Bangkok Post.
CP Land and Guangxi Construction are in the process of setting up a joint venture firm, CG Industrial Estate Co, that will have a registered capital of THB2 billion.
The project is being financed by 2 Chinese financial institutions, ICBC and Bank of China. Both companies already have a presence in Thailand.
Known as the CP Industrial Estate Rayong, the project will be built on a land plot spread over the Nikhom Pattana and Ban Khai districts in Rayong. A total of 73 per cent of the estate will be commercial area while utilities will take up 13 per cent and a green area and buffer zone will account for a further 10 per cent of the site. Companies being targeted for the estate include ones from the electronics, auto parts, processed agricultural products, and medical tools industries.
The partners have worked together before on projects with Guangxi Construction having built condos in Trang and Hat Yai for CP Land as well as a hotel in Nakhon Si Thammarat. The Chinese company already has a subsidiary in Thailand, Guangxi Construction Engineering Group Yian Thailand Co, that was founded in 2014.
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