Published on August 25, 2007
The complex, which will either be in Hanoi or Ho Chi Minh City, will have a retail space of between 80,000 and 100,000 square metres. Construction will start at the beginning of next year and the complex will open by 2010.
The development is one of the three major investment projects by CPN from next year to 2010 that together require a budget of about Bt7.4 billion. The second project is a retail complex on a 40-rai plot of the former Pre-Cadet School on Bangkok's Rama IV Road (Suan Lumpini), while the third has not yet been disclosed.
"The new shopping complex in Vietnam will be the first overseas complex developed by CPN and, if successful, it will become the model for developing retail complexes in other markets," said Naparat Sriwanvit, CPN vice president for finance.
"There is huge potential in the Vietnamese market, as there is no large shopping complex in the country. Vietnam is also enjoying rapid economic development," she said.
CPN chief executive Suthitham Chirathivat said earlier that besides Vietnam, the company was considering doing business in India.
CPN president Kobchai Chirathivat and chief of finance Naris Cheyklin are in India to investigate business opportunities there. In addition to its investments in the three new projects, CPN will spend Bt16.3 billion from this year until 2010 on completing unfinished shopping-complex projects at CentralWorld and on Chaeng Wattana and Rama IX roads in Bangkok, and in Pattaya, Khon Kaen and Chon Buri.
Naparat said CPN would delay
offering more units of its CPN Retail Growth Property Fund (CPNRF), but was considering offering a new office property fund to local investors instead to finance its business plans.
She said the company had temporarily halted its bid to raise Bt7 billion through its CPNRF due to the Bank of Thailand's recent capital restrictions on foreign investments in property funds.
The company is studying the possibility of launching a new property fund investing in an office building at CentralWorld, which will be concluded by the year-end. The new fund will target local investors only, she said.
Naparat said the other source of funding would be bank borrowing.
CPN yesterday announced its consolidated performance for first six months of the year. Revenue - rental and service income, food and beverage income and revenue from other sources - grew by 18 per cent year on year. Revenue growth was 23 per cent in the second quarter.
The company achieved revenue of Bt4.06 billion in the first half, up from Bt3.4 billion in the first six months of 2006. Revenue in the second quarter was Bt2.08 billion, up from Bt1.7 billion in the same period last year.
However, CPN's first-half net profit dropped by 4 per cent year on year, from Bt888 million to Bt851 million.
The company's rental and service costs in the first six months increased by 25 per cent year on year, from Bt1.7 billion to Bt2.1 billion, while its selling and administration expenses in the same period jumped by 44 per cent - from Bt415 million to Bt599 million.