CPN allots B30bn for residential development
SET-listed developer Central Pattana (CPN) is bullish on residential development, planning to spend 30 billion baht to develop 46 new projects nationwide worth a combined 60 billion baht from 2022-26.
Wallaya Chirathivat, president and chief executive, said the company will develop residential projects via three strategies. One tactic is to use plots attached to its new and 37 existing Central malls nationwide.
Another is to use plots attached to its parent firm Central Group's other retail businesses nationwide such as Thai Watsadu and Robinson, with the third option standalone development in potential locations.
"We aim to be Thailand's fully integrated developer with four property businesses including retail, residential, office and hotel in our ecosystem," she said. "We will upscale our property development to a retail-led mixed-use development."
Flt Lt Kree Dejchai, president of residential business, said the 46 new projects being launched in 2022-26 will be located in 30 provinces nationwide.
In the provinces, it plans to develop home offices and townhouses close to its retail businesses.
CPN started residential development eight years ago with a tally of 22 projects comprising low-rise houses and condos worth over 30 billion baht.
More than 10 billion baht was realised and the remainder was under development.
The company's new residential projects will be developed under CPN and Grand Canal Land Plc (GLAND), a property developer it acquired in 2018 which manages three office towers, is developing a low-rise house project and also owns many pieces of land in Bangkok.
One of GLAND's prime land pieces for a mix-used development is a 48.5-rai plot on both Phahon Yothin and Vibhavadi Rangsit roads near Phahon Yothin Soi 19 between BTS Ha Yaek Lat Phrao and Phahon Yothin Soi 24 stations.
"We are taking a feasibility study for the Phahon Yothin land," said Ms Wallaya.
According to the Treasury Depart- ment, the appraisal price of land on Phahon Yothin Road in Chatuchak district between 2016 and 2019 was 200,000-280,000 baht per square wah.
Ms Wallaya said the majority of the 120-billion-baht investment budget in 2022-26 will go to retail development accounting for 65%, followed by residential (25%) and office and hotel (10%).
By 2026, CPN aims to have 50 shopping centres and 16 community malls with a total space of 2.7 million square metres from the current 37 centres totalling 2.2 million sq m.
Office space will rise to 13 towers tallying 500,000 sq m from the current 350,000 sq m from 10 towers.
It will also have 37 hotels with 4,000 keys under three brands from the current two with 560 keys.
In the next four years with a total of 180 projects nationwide in four property businesses, revenue from retail property will account for 72% and that from non-retail will contribute 28%.