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Published on July 24, 2007

Central Pattana (CPN) has finalised plans for a shopping-mall project at the intersection of Rama IX and Ratchadaphisek Roads, which has been delayed since 1997 by changes in investment strategy by major partners.

CPN has decided to be the sole investor in the Bt3-billion retail complex under a long-term leasing contract with Super Asset, owner of the 2.72-hectare plot opposite Fortune Tower.

CPN president and CEO Kobchai Chirathivat said that earlier partners in the venture, including Yothin Boondicharoen of the Univest Group, Bangkok Bank chairman Chatri Sophon-panich and Italian-Thai Devel-opment's Premchai Karnasuta, decided to withdraw in the wake of the financial crisis, in order to concentrate on their core businesses.

"We [CPN and its potential partners] have already begun the design work as well as the commercial plan," he said, adding that CPN expects to launch the project by the end of this year or early 2008. Central Plaza Rama IX will open in 2010.

Meanwhile, Univest's Yothin is planning to invest in office and condominium complexes on the same plot, behind the new Central Plaza Rama IX.

Kobchai said many retail complexes had opened along Ratchadaphisek Road since 1997 but that CPN remained confident in the strong potential of Central Plaza Rama IX, because it would offer a different retail concept of "one-stop shopping".

Central Rama IX will be one of eight "flagship" retail projects developed by CPN by the end of 2010.

They include projects on Chaeng Wattana Road in Bangkok, to open in November 2008; in Pattaya, February 2009; in Chon Buri town, April 2009; and in Khon Kaen, June 2009.

Another project to be announced next year is the Central Plaza complex in Suan Lum, where the company has been awarded a 30-year lease by the Crown Property Bureau.

Kobchai said the bureau would deliver a 7-hectare plot in Suan Lum by the middle of next year after moving existing retail tenants from what is now the Suan Lum Night Bazaar. The project will comprise a 150,000-square-metre shopping complex, 100,000-square-metre office building and hotel, to open by 2010 or 2011.

CPN also plans to open two further retail projects by 2010, giving the company a total of 18 "flagship" complexes around the Kingdom.

"We'll strictly maintain our financial framework of a debt-to-equity ratio of 1:1 for each investment project, including Central Plaza Rama IX," said Kobchai.

He said the company had carefully monitored and evaluated the economic situation and political uncertainty since the beginning of last year. The currently strong baht is consistent with the problem of slowing domestic investments by private individuals.

"Local manufacturers have delayed purchases of new machinery and raw materials. This has led to imbalances in imports and exports and the flow of capital in and out of Thailand, finally resulting in the appreciation of the baht, which has fluctuated widely over the past 18 months," Kobchai said.

Kwanchai Rungfapaisarn

The Nation