CP Land set to expand footprint globally

Real Estate February 23, 2016 01:00

By Somluck Srimalee

The Nation

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CP LAND, the property arm of Charoen Pokphand Group, is looking to go international by expanding throughout Asean, Europe and Australia.

CP Land president and chief executive officer Sunthorn Arunanonchai said the company’s overseas investment focus was on office buildings and hospitality.

In Asean, he said Yangon in Myanmar and Ho Chi Minh City and Ha Noi in Vietnam were potential expansion options within the next two to three years, while the UK and Australia were the next focus.

The cost of each investment will range from Bt1 billion and Bt3 billion, he added. He said the company would buy land and acquire existing hospitality and office building assets.

In Thailand this year, CP Land set aside an investment budget of Bt12.1 billion. Up to Bt2 billion will be spent on the CP Industrial Estate in Rayong province, which has a total investment value of Bt7 billion. Construction is due to start this year for completion next year.

Another Bt3.6 billion will be spent on developing 16 condominium projects in eight provinces – Chonburi, Nakhon Ratchasima, Khon Kaen, Surat Thani, Chiang Rai, Kanchanaburi and Trang. And Bt4 billion will be invested in 10 new hotels at Nakhon Phanom, Nakhon Si Thammarat, Chiang Rai, Mae Sod, Nakhon Ratchasima, Buri Rum, Loei, Khao Yai and Bangkok.

Another Bt1 billion has been earmarked to develop a convention and exhibition centre in Khon Kaen, with Bt1.5 billion to be spent on developing five new office buildings in Nakhon Si Thammarat, Surat Thani, Bangkok, Hat Yai and Udon Thani.

Sunthorn said the investment budget would come from initial cash and a plan to raise capital by listing the company on the Stock Exchange of Thailand.

"We have appointed two financial advisers to prepare our company to apply to be listed company," he said. "If the capital market recovers this year, it [the planned listing] may be this year. If not, it can be next year.

"However, we have enough cash for our business expansion this year if we cannot apply to raise capital on the SET this year."

He added: "Although Thailand’s economy has shown signs of slight growth … we have continued to expand our aggressive investments because this is the right time for investments before the country’s economy has strong growth." According to the company’s investment plan this year, it expects its total asset value will increase from Bt20 billion to Bt30 billion by the end of the year.

It said up to 50 per cent of its total revenue would come from recurring income such as from offices, hotels, industrial estates, warehouses, and the convention and exhibition sector, with the remainder coming from the sale of residential projects.