CPMG adds partner for Pattaya plan

CPMG adds partner for Pattaya plan

Shanghai Kinghill brings retail flair

The Chearavanont family's Charoen Pokphand (CP) Group and its property arm Magnolia Quality Development Corporation (MQDC) will revise a property development plan in Pattaya worth more than 30 billion baht after buying back all the shares from Chinese developer Greenland Holding Group, the project's former co-investor.

MQDC chief executive Visit Malaisirirat said the revised plan will have more retail space because the project will have a new partner, Shanghai Kinghill Ltd, one of the family's China-based companies.

Visit: New plan to be completed next year

"Shanghai Kinghill has expertise in retail, which we plan to incorporate into the new plan," he said. "It is the operator of Super Brand Mall, one of Asia's largest entertainment complexes."

In March 2014, CP Group, MQDC and Greenland had a joint venture in CPMG Co, Ltd with a registered capital of 1 billion baht, where they held 41%, 10% and 49% respectively.

CPMG earlier planned to develop a large-scaled residential project worth 30 billion baht, which would comprise condominium, hotel, serviced residences and some retail space, located on 40 rai in the Na Jomtien area at a plot formerly used by Charoen Pokphand Foods, a CP Group business.

Early this year CP agreed to buy Greenland's 49% stake back. Greenland focuses on mass residential market, while CP and MQDC want to target the upscale market for the site to actualise the plot's potential.

Mr Visit said the new plan for the Pattaya site will be completed early next year. It will be one of six new property development projects worth a combined 50 billion baht MQDC plans to launch next year.

"Property market in the fourth quarter is unpredictable due to various factors, including the global economy and political situations. We have no new launches for the remainder of the year."

During the first nine months, MQDC recorded 4.8 billion baht in presales and aims to have 6 billion baht by the end of the year, down from 8 billion baht in 2015.

It will also realise 3.5 billion baht in revenue, the same as last year. Revenue will rise to more than 20 billion baht in 2018 with the completion of large-scale projects.

MQDC is a subsidiary of DT Group of Companies (DTGO), founded by Thippaporn Ahriyavraromp, the youngest daughter of Dhanin Chearavanont, chairman of Charoen Pokphand Group (CP), the country's leading agro-industrial conglomerate. DTGO currently has three businesses including property, trading and design.

DTGO's president Raj Tantananta said trading generated the highest revenue for the group with 4 billion baht last year, and is expected to bring in 6 billion baht this year.

Over the next few years, property will generate the highest income for the group, he added. The group plans to establish two new firms, in construction and property management, this year to support their property businesses.

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