CP Land, Charoen Pokphand Group’s property subsidiary, will invest THB10 billion this year in all of Thailand’s high-growth property segments including condominiums, hotels, warehouses, office space and industrial estates, Deal Street Asia reported. The company is optimistic of an economic recovery in Thailand and sees these areas as potentially being lucrative.
“We believe that the government will accelerate spending in the budget to aid economic recovery,” Sunthorn Arunanondchai, president and chief executive officer of CP Land, told the website. “Besides, the inauguration of Asean Economic Community will resume confidence among consumers and investors and we believe demand for properties in Thailand will be picked up soon.”
He added that CP Land has already purchased and prepared the land for some of the projects and the company hopes to launch many of these this year. At the moment, CP Land has 50 property projects in 33 provinces and it will increase this number to 60 projects in 40 provinces during this latest round of investment, according to Deal Street Asia.
Plans call for the developer to launch around eight to ten condominium projects in main economic and tourism cities that will target the low-to-mid segment of the market. The projects will be located in Ayutthaya, Sukhothai, Surin and Mukdaharn. Many of the newly-developed condominiums are slated to be mixed-use complexes that will feature roughly 400 units. Deal Street Asia noted that CP Land’s current residential projects only have around 100-200 units each.
Around 65 percent of CP Land’s current revenue comes from property sales while another 35 percent is earned from property leasing. However, the developer would like to see a more even split in the future and is planning to focus on earning more via leasing.
CP Land is also targeting an ASEAN expansion and has begun to seek local partners as it wants expand into Cambodia, Laos, Myanmar and Vietnam. “We expect to announce a THB500 million joint venture project in Yangon by the mid of 2016. The assets will be a hotel and an office building for rent with total investment of around THB1 billion,” Sunthorn stated. “The Asean market has over 600 million people, which is nine times bigger than Thai market. We have explored opportunities around the region, and we think that Myanmar is the most attractive at the moment.”
Image: CP Tower (office building) in Pitsanulok
