The SET-listed retail developer Central Pattana Plc (CPN) plans to raise an additional 10-12 billion baht this year to finance its ambitious investment plans including developing a prime location at the busy intersection of Rama IV and Sathon roads.
Naparat Sriwanvit, an acting executive vice-president, yesterday said CPN will issue new units of its CPN Retail Growth Leasehold Property Fund (CPNRF) in a private placement, to be backed by two new projects in Chiang Mai and on Bangkok's Ram Intra Road.
Currently, CPNRF invests in CentralPlaza Rama II, CentralPlaza Ratchada-Rama III and CentralPlaza Pinklao.
It is also considering adding another asset to its CPN Commercial Growth Leasehold Property Fund (CPNCG), which invests in the leasehold rights of The Office@Central World.
"We will sell these assets to those property funds this year. If everything goes as smoothly as planned, we'll also issue more bonds this year," said Ms Naparat.
She said the company will also join the bidding to lease the former Suan Lum Night Bazaar from the Crown Property Bureau (CPB).
In 2007, it was awarded a 30-year lease contract to develop 40 rai of the plot.
But the CPB early this month ran an ad seeking proposals from the public for the long-term leasing and development of the 88 rai or 35,200 square wah of that site.
CPN wants to build a complex of shopping facilities, offices and a hotel on the site, one of the most expensive plots in the country.
"We have to ensure our financial readiness in case the opportunity arises," said Ms Naparat.
She also discussed regional projects by the country's leader in retail development.
Terms for building a department store in Malaysia are almost settled, and a memorandum of understanding is expected to be signed soon.
However, no progress has been made regarding proposed projects in Vietnam and Indonesia.
Ms Naparat said CPN expects revenue growth of 15% this year due to rental rates rising by 7-8%, while retail rental space occupancy is as high as 95%.
As well, a court ruling orders Deves Insurance to pay a 3.7-billion-baht settlement for the 2010 arson attacks on CentralWorld.
CPN will be able to book that amount as revenue plus 7.5% interest this year starting from this month unless Deves appeals the court ruling, said Ms Naparat.
Furthermore, it expects a gross margin of 47% similar to last year, in line with the projections of its department stores' retail sales, which look set to rise by 15-20%.
Shares of CPN closed yesterday on the SET at 92.50 baht, down 75 satang, in trade worth 180 million baht.