CPN will use land plots close to its shopping malls to develop residential projects, several media outlets are reporting. The company believes the move will increase revenue growth by 15 percent per year for its housing business starting in 2018.
Kree Dejchai, executive vice-president for special project development, told the media that CPN is looking to launch four or five new residential projects worth THB3 billion during the next 12 months. The company launched its first three residential projects earlier this year under the Escent brand.
The three projects are all located outside of Bangkok and are situated in or close to CentralPlaza shopping centers. The Chiang Mai development (imaged) is valued at THB925 billion while the Khon Kaen and Rayong projects are valued at more than THB900 billion.
The Chiang Mai site will have a 26-story building with 400 units. That development as already been sold out while the Khon Kaen and Rayong projects are both over 85 percent sold.
“The key to success may be locations close to shopping malls,” Flt Lt Kree told media. “Today, the property development trend is towards mixed use. Residential developers come across the retail property business and vice versa for retail developers.”
Despite condo sales slowing in the provinces, CPN was able to achieve impressive sales rates outside of the capital and is hoping for similar success in Bangkok where the company is preparing to launch its next round of projects.
“The plan aims for revenue growth to THB3 billion in 2019, which will be the second year that we realize revenue from residential development,” Flt Lt Kree stated. “We are eyeing five plots of land near our shopping malls in Greater Bangkok and the provinces.”
CPN has experience in the residential sector and currently has 12 condo units for rent near CentralPlaza Bang Na. The company had an occupancy rate of 37 percent in the first quarter and continues to search out land plots to expand its residential reach.
