CP Land eyes B15bn for provincial efforts

CP Land eyes B15bn for provincial efforts

Condos, warehouses, industrial estate on tap

CP Land plans to spend more than 15 billion baht next year to develop condo projects with a combined 3,000 units in 10 provinces, five distribution centres and a 3,200-rai industrial estate in Rayong.

The target provinces for condo projects need not be major ones but rather those where demand is strong, purchasing power is good and residents accept condo living, said president and chief executive Sunthorn Arunanondchai.

"The 30 provinces we've already entered to develop condos led us to leapfrogging growth," Mr Sunthorn said yesterday.

"We dare say we are now the largest developer in the provinces."

Since entering provincial condo development in 2012, CP Land has launched 8,028 units at 40 projects worth a combined 11 billion baht in 30 provinces.

Surprisingly, those provinces do not include tourist destinations such as Chiang Mai, Phetchaburi's Cha-am district or Prachuap Khiri Khan's Hua Hin district.

The company has targeted smaller provinces such as Sakon Nakhon, Maha Sarakham, Ratchaburi, Lampang, Nakhon Sawan and Nakhon Si Thammarat.

"We'll go to provinces where competitors do not enter," said vice-president Naravadee Waravanitcha.

"We don't consider economic figures or population size, as they may not reflect the real situation. We'll see and survey provinces with our own eyes."

She said many provinces had a good economy and strong potential, but the condo supply launched in recent years proved too heavy for demand to absorb.

Nonetheless, the company will launch a condo project in Pattaya, its first in Chon Buri province, this year, with 1,000 units worth 2 billion baht on Sukhumvit Road behind Tesco Lotus.

CP Land will spend 4 billion baht to develop distribution centres in Khon Kaen, Chiang Rai's Chiang Khong district, Lampang, Phitsanulok and Surat Thani on plots exceeding 50 rai each to support Charoen Pokphand Group's 7-Eleven convenience store operations.

The industrial estate in Rayong, meanwhile, will require an investment of 7.75 billion baht.

The estate will sell and rent mainly to Japanese and Chinese investors and support SAIC Motor-CP Co, a joint venture between CP Group and Chinese car maker SAIC.

In Bangkok, CP Land will spend 1.2 billion baht to develop the 18-storey office building CP Tower North Park on four rai in North Park on Vibhavadi Rangsit Road.

The structure, with total space of 46,000 square metres, is scheduled for completion in 2016.

In recent years, CP Land spent 2.7 billion baht to develop eight office buildings in eight provinces with a combined area of 56,000 sq m.

The company is also spending 3.5 billion baht to develop 993 hotel rooms in four provinces — Nakhon Phanom (where it acquired an existing hotel), Chiang Rai, Nakhon Si Thammarat and Nakhon Ratchasima.

All will operate under the Fortune Hotel brand.

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