CPN plans China joint venture

PROPERTY

Central Pattana Plc (CPN), the country's largest retail property developer, has confirmed its first overseas business deal with Chinese partners to jointly develop a shopping centre next year.

CPN has concluded that overseas retail projects will be through joint ventures, said president Kobchai Chirathivat. CPN is exploring opportunities in China and India, he added.

"At this stage, we are now in talks with three or four potential investors from both countries and the most promising deal will be in China, which is expected to be finalised next year," he said.

CPN expects to invest about 1 billion baht to develop the shopping complex in China next year.

Nattakit Tangpoonsinthana, executive vice-president for marketing at CPN, said as many as 20 foreign investors were negotiating to invest in CPN because its reputation has grown from winning several international awards for its shopping complexes, especially CentralWorld.

CentralWorld recently took a gold award for development and design excellence at the 2009 ICSC Asia Shopping Centre Awards, which are given by the International Council of Shopping Centers (ICSC) and are considered the Oscars of the retail business.

Mr Kobchai said the success of CPN is partly because the company is an innovation-driven organisation.

"This is in line with our mission to become the world's leading property developer for the retail business over the next five years," he added.

To position for the economic recovery, CPN will be more active in marketing to draw more shoppers to its complexes. It will increase its marketing budget by 5-10% to 600 million baht next year.

Yesterday, the company announced the grand opening of the 4-billion-baht CentralPlaza Khon Kaen on Dec 3. It will spend more than 100 million baht on the opening ceremony under the concept "Weaving Happiness to the Heart of Isan".

CentralPlaza Khon Kaen, the 15th CPN shopping complex, is in an area with high potential in downtown Khon Kaen at the Mitraparb-Srichan intersection, next to the Khon Kaen city gate. It covers more than 45 rai and houses more than 300 shops over more than 250,000 square metres of retail space. The main anchors include Robinson Department Store, Tops Market, Power Buy, B2S and Super Sports. Entertainment venues include SF cinemas, SF Bowl and Karaoke.

CPN shares closed yesterday on the SET at 20.50 baht, up 40 satang, in trade worth 58.1 million baht.