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Published on March 19, 2008

The three projects are part of the leading property and investment firm's Bt9.5-billion retail expansion through to 2011.

One of the planned projects is destined for Suan Lum in Bangkok. The second is scheduled for a country site while the third will be in China, senior executive vice president and CFO Naris Cheyklin says.

As of last December 31, CPNRF's portfolio was worth Bt11.19 billion, which are the weighed in assets of Central Rama II and Rama III.

"The company is considering the selling of assets of Central Plaza Pinklao and of others to the fund," said Naris, adding this would match with the company's planned investment expenditure.

In addition, he said Central Pattana was in talks to acquire a mall in the central city to develop a community mall.

Central Pattana's 2007 revenue grew 16.5 per cent year on year to Bt8.49 billion, due to incremental contributions from CentralWorld and stronger performances from Central Ram-Indra and Central Rattanathibet.

Meanwhile, the company's 2007 net profit increased by 5.8 per cent year on year to Bt1.78 billion, reflecting a lower margin at CentralWorld as its advertising and promotional expenses were up 80 per cent year on year to Bt566 million.

However, Central Pattana's 2008 outlook is expected to be better as the bargaining power of increasing rent rates for retail space was shifted to the renter. "We expect our revenues for 2008 will grow by 20 per cent from last year," he said.

"We plan to increase rental rates for retail space at Central branches except CentralWorld by an average of 7 per cent this year," Naris said.

Last year, the company's average effective retail rental rates increased by 5 per cent year on year to Bt1,220 per square metre per month.

Its occupancy of retail properties increased to 96 per cent and occupancy rate of office space increased to 93 per cent, supported by a strong take-up rate at The Offices at CentralWorld and in Pinklao Tower B. Naris said construction of the two new projects, Central Plaza Chaengwattana and Central Festival Pattaya Beach, was progressing as scheduled.

Last year, sales progress reached 70 per cent and 80 per cent, respectively, with confirmation of all anchors. Its major anchors are Central Department Store, Major Cineplex and HomeWorks.

Sasithorn Ongdee

The Nation