bangkokpost.com wrote:CPN set to spend B9.5bn on malls

PITSINEE JITPLEECHEEP

The listed shopping-complex developer Central Pattana Plc (CPN) will spend 9.5 billion baht on three new shopping centres from this year to 2011.

One of the projects involves acquiring a shopping mall in Udon Thani while the company would handle development of the other two, including the Suan Lum Night Bazaar, on its own.Naris Cheyklin, the company's chief financial officer, told investors yesterday that of the 9.5-billion-baht investment budget, 1.6 billion would be spent this year, 1.85 billion next year, 4.05 billion in 2010 and two billion in 2011.

Apart from the new projects, CPN has raised its investment budget in Khon Kaen to 2.6 billion baht from 1.6 billion earlier due to rising construction costs.

A 10-rai plot would be bought to enlarge retail space, expand the store's entrance and exit and add a new convention centre.

Mr Naris said that apart from the 1.6 billion baht allocated for this year, the company planned to spend 7.05 billion baht to continuously develop its existing projects at CentralWorld, Chaeng Watthana, Pattaya, Chon Buri and Rama IX.

Another 17.16 billion baht has been set aside for the expansion of existing centres from 2009 to 2011.

Mr Naris said the source of funds this year would be the transfer of more assets to the SET-listed CPN Retail Property Growth Fund (CPNRF), doubling its asset size to 20 billion baht.

Subject to shareholder approval, CPN would sell its two retail shopping complexes in Chiang Mai and Pin Klao in Bangkok to CPNRF.

Additional funds would be raised through the property fund in the third quarter of this year.

"If the size of CPNRF increases to US$600 million, more foreign investors will invest in the fund, adding to its liquidity," he said.

Mr Naris said consolidated sales of CPN in the first quarter of this year were up 13% year-on-year to 2.23 billion baht, with a 48% rise in net profit to 617 million baht. The increasing revenue came mostly from a higher contribution by CentralWorld and higher rental rates at all properties. Additionally, discounts given to tenants and marketing and promotional expenses declined, reflecting stronger market sentiment and consumer confidence.

The marketing budget was cut to 3% of total sales from 4-5% earlier.

The company expects to maintain its sales in the second quarter of this year but performance in the third quarter would hinge on politics, he said.

However, the impact of higher costs of living would be minimal since CPN targets middle-level earners who have changed their lifestyle. Many of its customers have moved to condominiums and travel by mass transit, leaving them with more money to shop.

Shares of CPN closed yesterday on the SET at 27.75 baht, unchanged, in trade worth 23.5 million baht.

wazza wrote:Lee can i smell a foot long subway and starbucks latte ??

wazza wrote:Lee can i smell a foot long subway and starbucks latte ??

wazza wrote:Lee can i smell a foot long subway and starbucks latte ??

Prenders88 wrote:

wazza wrote:Lee can i smell a foot long subway and starbucks latte ??

Not forgetting a MacDonald's.