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CPN to review stalled projects

Bangkok Post May 15, 2009 The SET-listed property developer Central Pattana Plc will revise investment plans for delayed projects worth at least 10 billion baht by mid-June. The 4.6-billion-baht Central Plaza Chon Buri is due to open on May 29. The 165,000-squaremetre complex will house more than 200 tenants, including Robinson Department Store, Tops Market, PowerBuy and SF Cinema City. The revised plan is a reaction to early signs of improvement in the local economy and a calmer global outlook, said president and CEO Kobchai Chirathivat. Stimulus packages in Japan, Singapore, Hong Kong and China have caused the Asian economy to rebound faster than expected. "We believe that our economy and politics have already passed their lowest point and it is now the time to take off again," he said. Central Group decided to postpone construction of new complexes for one or two years, after last November's airport closure and political unrest. This included new projects in Chiang Mai, Chiang Rai, the Rama IX area in Bangkok, and the renovation of Central Plaza Lat Phrao. The return of foreign investors to the local stock market, lower-than-expected job losses in Japan, and the improving US economy were among the factors that suggested economic improvement, said Nattakit Tangpoonsinthana, executive vice-president for marketing at CPN. Moreover, visitor traffic at CPN's new shopping complexes in Bangkok and Pattaya has been better than projected. People might stop buying residential projects and cars, but they still go shopping, said Mr Nattakit. Apart from the investment review, CPN also plans to renovate its new branch in Udon Thani, taken over from Charoensri Plaza in April. This is to cater for this November's SEA Games in nearby Laos. Mr Kobchai said yesterday the grand opening of the 4.6-billion-baht CentralPlaza Chon Buri would be on May 29. CPN decided to develop the project because it believes Chon Buri offers potential as it is a significant commercial city that continues to experience economic and industrial growth. Chon Buri province has more than 1 million inhabitants and a large number of foreigners working in local industries, as well as Thailand's second-highest gross provincial product after Bangkok. Central Plaza Chon Buri was built on the 62-rai plot with a construction area of 165,000 square metres. It will house more than 200 tenants, including Robinson Department Store, Tops Market, PowerBuy and SF Cinema City. The company plans to spend 90 million baht on the grand opening of its complex. CPN expects its sales this year to increase by 20-25% to 12.5 billion baht. CPN shares closed yesterday on the SET at 14.80 baht, down 20 satang, in trade worth 40.14 million baht.

 

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