CP Land upbeat about B4bn investment

Construction News
CP Land’s Fortune Hotel in Buri Ram will have 76 rooms

CP Land upbeat about B4bn investment

Company to develop industrial estate, hotels, office towers and residential projects this year

30 March 2019

CP Land Plc, a property arm of Charoen Pokphand Group, remains confident about the country’s political and economic prospects, vowing to continue investment of 4 billion baht in 2019 to develop an industrial estate, hotels, office towers and residential projects.

President and chief executive Sunthorn Arunanondchai said the majority of the investment, some 1.5 billion baht, is for the hotel business.

The company plans to have five hotels with a total of 400 rooms in the provinces, either through acquisition or its own development.

Some 1 billion baht will be spent to develop infrastructure and utilities like roads, water drainage and wastewater treatment at the company’s 3,068-rai CPGC industrial estate in Ban Khai and Nikhom Pattana districts in Rayong province.

CPGC will be developed by CG Corporation, a joint venture of CP Land and Guangxi Construction Engineering Group, one of the largest construction firms in China, holding 50% and 48% respectively, with registered capital of 2 billion baht.

“In the second half, investments from overseas will flow to the Eastern Economic Corridor,” Mr Sunthorn said. “Thailand is the best destination to invest. Opportunity is very huge.”

He said CP Land is confident in Thailand’s politics and economy and will continue investing no matter who forms the new government.

In 2019, the company will develop 600 residential units comprising condos priced at around 2 million baht a unit in provinces and single detached houses priced at 3.5-4 million baht each in Min Buri.

In Chon Buri’s Sri Racha district, CP Land will turn 42 townhouses, earlier planned to sell, to rent out at a rate of 60,000 baht per month. Demand from Japanese executives working in the Eastern Seaboard is strong, and the location is close to a Japanese school.

Since the condo market in the provinces has slowed since 2017, the company will monitor the market situation and only launch units with prices affordable for real demand.

In a related development, CP Land yesterday officially opened the Grand Fortune Hotel Nakhon Si Thammarat with 321 rooms. It will open a 76-room hotel in Buri Ram and a 79-room hotel in Phitsanulok.

The firm expects to maintain a profit of 900 million baht in 2019, the same amount as last year, when the main contribution was offices, followed by residential development.

By the end of 2019, the company will open CP Tower North Park, a 19-storey office tower on Vibhavadi-Rangsit Road, with a lettable area of 25,500 square metres.

At present it has 12 office towers and a combined lettable area of 200,000 sq m, including three in Bangkok and nine in seven major provinces with an occupancy rate of 98% and 60% respectively.

Hotels in Bangkok are profit-making with an occupancy rate of over 90%, while those upcountry, 10 hotels in eight provinces, remain in the red with an occupancy rate of 50%.

The company is scheduled to open a 109-room hotel in Rayong, one 79-room hotel each in Samut Sakhon and Mukdahan, and a 150-room hotel in Khon Kaen in the period from the second half of 2019 to 2020.

Source: https://www.bangkokpost.com/business/news/1653464/cp-land-upbeat-about-b4bn-investment