Chief financial officer Naris Cheyklin said originally the company planned to launch a new property fund besides its existing CPN Retail Growth Fund (CPNRF). However, it is concerned that setting up a new fund of Bt5 billion-Bt6 billion would be too small.

Central World office and Central Pinklao will be the underlying assets for the fund raising. The funds raised through these two assets would be used for investment in two branches in Chaeng Wattana and Pattaya.

Naris aims to generate a 6.5-per-cent return from the two assets.

CPNRF was launched last August. Central Pattana sold its properties at Central Rama II and Rama III to TMB Asset Management to manage.

Currently the fund amounts to Bt10.92 billion.

Jotika Savananandha, managing director of TMB Asset Management, said that setting up a new fund for office property would be more difficult than raising funds by extending the size of the existing one. However, TMB Asset Management would need to ask for votes from its shareholders, which could be finalised by the fourth quarter of this year.

Naris said the company is confident of obtaining 12-per-cent growth as planned. Last year it generated Bt9.99 billion in revenue.

The growth target would partly derive from two new branches in Rattanatibet and Central World Plaza. The company expects to open Central World Plaza by the end of this month. It aims to achieve Bt400 million-Bt500 million revenue. Then the second phrase of area development would start next year.

The company has set aside Bt6.8 billion for this year's investment.

Over two years, Bt4.55 billion will be invested in the Chaeng Wattana branch and Bt3.3 billion in the Pattaya branch. The former is expected to be operational by the third quarter of 2008 and the latter by the second quarter.

Remaining investment funds will be used for the redecoration of existing branches.

The company has set Bt30 billion for a five-year-investment plan for the construction of eight shopping centres and redecoration of five branches.

Apart from raising funds through investment tools and borrowing about Bt15 billion, the company plans to increase its capital by another Bt1 billion next year.