CPN makes foray into Malaysian retail

CPN makes foray into Malaysian retail

Central Pattana Plc, Thailand's leading retail property developer, has entered into a joint-venture agreement with a Malaysian developer to build a 580-million-ringgit (5.73-billion-baht) shopping mall in Selangor, Malaysia.

CPN agreed to be the major stakeholder with 40% in the new entity through its local subsidiary, while I-City Properties Sdn Bhd (ICP), an I-Berhad wholly-owned subsidiary, will hold 40% to establish the venture.

President and chief executive of CPN Kobchai Chirathivat said in a statement on Monday that this marks CPN's first strategic move in Asean and reflects its confidence in the Malaysian economy.

The venture will develop a RM580-million shopping mall at i-City in Shah Alam, the state capital of Selangor, one of the most prosperous states in Malaysia.

"Shah Alam has a population of over 600,000 and a rapidly growing middle class segment. This investment will be an important starting point for us to achieve our vision, which is to be a regional retail property developer, and this joint venture will strengthen our commitment to it," Mr Kobchai said.

He said the company is confident in ICP's expertise in construction management as well as local market understanding and strong government relations that will greatly contribute to the success of the project.

CPN will contribute its expertise in retail property development, boasting extensive experience with 21 leading shopping malls, seven office buildings and two residential projects.

The construction of the mall is expected to start next year and is scheduled to open by the end of 2016.

ICP is the property arm of I-Berhad, a listed firm on the Main Market of Bursa Malaysia. ICP is the developer of i-City, an integrated township, consisting of shopping malls, office space and hotels.

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