Central Pattana Plc’s president Kobchai Chirathivat and executive vice president Wallaya Chirathivat show how the shopping complex zone in CentralWorld will bring gigantic cash flow of Bt146 billion in its first year of operation.

Central Pattana Plc expects CentralWorld to generate Bt146 billion from an expected 54.7 million visitors in the first year after renovations to the shopping complex zone are finished by the end of June. The company estimates that it will break even on the investment in seven years.

From the expected cash flow, Bt40 billion is expected to come from sales generated by its stores and rental fees.

Central Pattana's president, Kobchai Chirathivat, said that half of the sales would be contributed by international tourists and the rest by well-to-do locals.

The company expects 100,000 local shoppers and 50,000 international tourists per day at the shopping centre formerly known as Central World Plaza.

It estimates that the maximum spending per head per day by international shoppers would be Bt4,000 and that locals would spend between Bt2,000 and Bt3,000.

He said that once expansion and renovations of the 64-rai shopping complex are finished, it would attract visitors for four reasons. First, it will be the largest shopping complex in Thailand.

Second, it is located in a strategic location surrounded by many five-star hotels such Grand Hyatt Erawan Bangkok and Four Seasons where high-end tourists stay.

Third, it has a wide variety of shopping: 550,000 square meters occupied by 500 local and international stores, 50 restaurants, a children's and learning zone, supermarket, convention centre, 18 cinema screens by SF and Major Cineplex, and three bowling alleys.

CentralWorld will also be a location for 35 speciality shops including MNG, Zara, Miss Sixty, SuperSports, and Toy 'R' Us. Thirty-six international brands will also make their debut on the local market, such as Next from UK, Camper shoes from Spain, and Country Road clothing from Australia.

The fourth factor is it provides a premium shopping experience, according to Kobchai.

The company has set aside Bt300 million for promotional activity, of which 30 per cent will be used for advertising through print, indoor and outdoor media channels and the rest for arranging both Central's marketing campaigns and co-promotion campaigns with its tenants, said Wallaya Chirathivat, Central Pattana's executive vice president.

It will also hold road shows abroad and consistently conduct public relations activities in target countries like Singapore, Hong Kong, Japan, China, Taiwan, and South Korea.

Wallaya said the company was not worried about negative economic factors such as the oil price hikes. Central's main customers have high purchasing power and are willing to ride out the problems, while international tourists still continue to visit Thailand. Moreover, whatever the crisis, consumers always tend to rely on the market leader in each sector to ensure product quality.

At this moment, 92 per cent of the 550,000-square-metre commercial area at Central World Plaza has already been reserved and the rest is in negotiation.

Rental fees range from Bt1,000 to Bt5,000 per square metre. The shopping complex is expected to open within December this year.

Within CentralWorld there will also be a 500-room five-star hotel scheduled to open in the first quarter of 2008, a 45-floor office building, and an outdoor activity area.

Central Pattana's revenue in the first quarter grew 5-10 per cent year-on-year due to the strong performance of its new Pinklao and Rattanatibetre branches.

Nitida Asawanipont

The Nation