Central Pattana building homes near its malls
Property and retail developer Central Pattana (CPN) plans to use land near its shopping malls throughout Thailand to develop residential projects, aiming for annual revenue growth of 15 per cent from the housing business from 2018 onward.
Executive VP for special project development Kree Dejchai says the company will launch four or five residential projects worth 3 billion baht (US$85 million) in the next 18 months. He says the company has its eye on five plots of land near its malls in greater Bangkok and the provinces.
For 2018, CPN forecasts 2.35 billion baht in revenue from the first three residential projects. Sales are being launched this year under the Escent brand. In Chiang Mai, Khon Kaen and Rayong, the three projects are worth 925 million, 900 million and 910 million baht respectively, and are in or close to CentralPlaza shopping centres.
Already sold out, the Chiang Mai project is a 26-storey building with 400 units. Khon Kaen and Rayong will have 408 and 419 units, and are 85 per cent sold.
Residential business is not new for CPN, which has 12 condo units for rent near CentralPlaza Bang Na and an occupancy rate of 37 per cent in the first quarter. Late last year, CPN changed one of its subsidiaries, CPN Construction Management, to CPN Residence for residential development. CPN increased the subsidiary’s registered capital to 1 billion baht from 1 million.
Vacant land near CPN’s shopping malls will be used to develop condos, home offices, townhouses and single houses.
With a total investment of 13.5 billion baht, CPN is building three malls – in Nakhon Si Thammarat, to open next month, Nakhon Ratchasima and Phuket phase two, which will open next year.