CP Land, property arm of Charoen Pokphand Group, yesterday revealed its overseas business strategy between now and 2017, which will concentrate on Asean, Europe and New Zealand.
Focusing on office and hospitality properties in Thailand and abroad, the company targets total revenue of Bt10 billion in 2017, Sunthorn Arunanondchai, president and chief executive officer of CP Land, said in a group interview after the grand opening of CP Tower Phitsanulok.
“The first overseas project will be in Yangon, Myanmar, worth Bt500 million, with investment starting in the second half of this year,” he said.
This is part of its 2015-2017 investment plan worth a total of Bt30 billion.
The next step will be to invest in office and hospitality properties in other countries in Asean such as Vietnam, Laos and Cambodia.
The company is also negotiating with investors in such countries as China, Japan and Singapore who want to do business in Thailand. They are interested in residential, hospitality and office developments.
In the domestic market, CP Land has continued to expand its investment in six categories: homes for sale, offices, hotels, industrial estates and warehouses, meeting and convention centres, and power plants.
In the second half of this year, the company plans to launch Bt2.4 billion worth of condominium projects comprising up to 1,600 units. Condo projects in Greater Bangkok will be near major transport corridors such as the mass-transit rail system or highways. Upcountry, Nong Kai, Chiang Kong district of Chiang Rai, Nakhon Phanom and Mae Sot are on the company’s development agenda.
CP Land also plans to open 10 new office buildings in places such as Surat Thani, Nakhon Si Thammarat and Songkhla’s Hat Yai district, as well as a third office building in Khon Kaen. Investment in these projects started last year and is worth more than Bt10 billion.
As part of its three-year Bt30-billion investment plan, the company is setting aside Bt14 billion for next year’s developments. Of that, Bt8 billion will be for development of an industrial estate in Rayong province, and the remaining Bt6 billion for a power plant in the estate. Half of the investment budget is from its internal cash flow, some from the Bt10-billion property fund it launched last year, and the rest from bank loans, Sunthorn said.
Through its aggressive three-year investment plan, CP Land will boost revenue from last year’s Bt3 billion to Bt10 billion in 2017. Up to half of its total revenue will be recurring income, and the rest from residential sales.
The company also plans to apply for listing on the Stock Exchange of Thailand next year, raising new capital amounting to about 15 per cent of its registered capital of Bt3.63 billion.
CP Land recorded net profit of Bt580 million in 2014.
This year, the company targets revenue of Bt3 billion, nearly the same as last year, Bt6 billion in 2016 and Bt10 billion in 2017.