Retail and property developer Central Pattana Plc (CPN) is preparing its biggest residential expansion in five years with 50 more projects worth 40 billion baht, in a bid to achieve synergy with the overall Central group.
Wallaya Chirathivat, CPN president and chief executive, said the company is strengthening its residential business through the retail-led mixed-use development approach. CPN plans to roll out 50 projects in 27 provinces, mostly in destinations where CPN or Central Group have already expanded or plan to construct new malls, offices or hotels.
She said with the company's move into residential property eight years ago, the current five-year plan (2022-2026) represents the largest shift, which could accelerate the revenue contribution from residential development to 15% of the total, up from 7% at present.
Ms Wallaya said the new projects will grow CPN's total residential portfolio to 70 projects nationwide, comprising houses and condo units.
In addition to the convenience for customers living nearby CPN mixed-use facilities, the retail and residential integration strategy will provide homebuyers with perks at Central shopping centres, such as car parking slots and a personal concierge service, she said.
"We will pinpoint the best location in each town for residential development," said Ms Wallaya. "A good location could be a plot connecting to CPN projects, or any plot that has strong potential. With a good location, quality products matching purchasing power at a B+ level, and CPN's strong reputation, buyers can expect to have an attractive yield of at least 4-5%."
Kree Dejchai, president for residential business at CPN, said the expansion commenced this year with a 6.5-billion-baht investment in six projects, comprising condo projects worth 4 billion and 2.5 billion baht for houses.
The company aims to have sales of 5.5 billion baht and revenue of 3 billion baht this year.
Mr Kree said condos will account for 60% of total development. CPN's various brands will tap each segment, such as ESCENT with a starting price of more than 2 million baht per unit, and PHYLL with prices starting at more than 3 million baht.
Housing developments, which will make up 40% of the total, will be comprised from at least three brands: NIYHAM (over 25 million baht per unit), NINYA (over 10 million baht) and NIRATI (over 5 million baht).
Four condo projects are slated for this year under the ESCENT brand, with one adjacent to Central Suratthani.
The other three are projected to be near Robinson Lifestyle shopping centres in Suphan Buri, Chachoengsao and Trang.
CPN also plans to launch two housing projects, namely the NINYA Ratchaphruek and NIRATI Chiangmai.