Afternoon Highlight (20/05/13/85/783) Central Pattana upbeat on retail sector here

Central Pattana upbeat on retail sector here


REGIONAL EXPANSION: Thai developer sees Malaysia as key growth driver

Central Pattana pcl (CPN), Thailand’s largest retail developer, sees Malaysia as its key growth driver in the region as the group plans to leverage on the single Asean market initiative.

CPN, with a cash reserve of nearly four billion baht (about RM406 million) as at end-2012, earns most from businesses in Thailand.

A subsidiary of conglomerate Central Group of Companies, the company plans to replicate Central Group founder Tiang Chirathivat’s success in Thailand here.

CPN chief executive officer (CEO) Kobchai Chirathivat said Malaysia, which is on track to achieve gross domestic product growth of five to six per cent this year, offers a lot of opportunities for the setting up of malls.

“We understand Malaysia has a lot of space for more malls, hence we want to replicate some of our projects in Thailand here. Whenwe build the malls, the concept will be unique in nature,” Kobchai told Business Times in an interview last week.

Central Group is owned by the Chirathivat family, Thailand’s second wealthiest, with a net worth of US$6.9 billion (RM20.8 billion), according to Forbes magazine.

CPN’s plan to venture into Malaysia comes at a time when the company is growing at a rate of 30 per cent a year.

It is understood the company has set aside a war chest of US$324 million a year to build more malls.

It currently holds the biggest share of Bangkok’s retail market, at 24 per cent. It manages 21 malls, seven office buildings, two hotels and two residential towers, all spanning over two million square metres.

Last year, CPN’s revenue stood at 17.69 billion baht, a jump by a third from 12.77 billion baht in 2011.

The company will pour in some cash to help build a 1.5-million sq ft mall at i-City in Shah Alam, in a joint venture with I-Berhad.

The mall is estimated to cost US$200 million and will be partly funded by I-Berhad, the master developer and project owner of i-City.

Tiang, an immigrant from China, started a general merchandise store in 1947 in the Samphanthawong district, Bangkok’s Chinatown.

The store eventually evolved into a giant family-owned corporation with interests in mercantile, real estate, retailing, hospitality and restaurant businesses in Thailand.

Source : The New Straits Times
Date: 20 May 2013
Afternoon Highlight (20/05/13/85/783)