Central Pattana Plc (CPN), the SET-listed property arm of Central Group, plans to develop nine condominium projects worth a total of almost 5 billion baht over the next five years.
Chief financial officer Naparat Sriwanvit said the company would seriously expand its property business to raise revenue and use assets.
It will choose locations from 10 land plots in the same areas where its shopping complexes are located across the country.
CPN expects to develop about three condo projects each year from 2018-20. The plan will require 1.6 billion baht each year for the high-rise condos, which will each have about 400 units.
The company will start selling its condo project in Chiang Mai next month.
Condo projects in Pattaya, Khon Kaen and Rayong have already started construction and will be completed in 2017.
The expansion to condo development will contribute 5% to the company’s revenue in 2018, Ms Naparat said.
The company will allocate 46.14 billion baht to expand its shopping complexes from 2016-18.
Of the total, about 11.98 billion baht will be spent on projects that are under construction including CentralPlaza in Nakhon Ratchasima, which is due to open in the fourth quarter of next year or the first quarter of 2017, and CentralPlaza in Nakhon Si Thammarat, which will be opened in 2016. About 29.98 billion baht will be allocated to develop new projects and the remaining 4.18 billion will be used for improving its existing projects in Pattaya, Phuket, Rama III Road in Bangkok and the third phase of CentralPlaza Bangna.
CPN has 29 Central shopping complexes across the country, of which 13 projects are in Bangkok and 16 are upcountry.
Revenue of CPN in the first nine months of this year rose by 8% to 18.8 billion baht, while its net profit surged by 9% to 5.97 billion.
Last year it posted a net profit of 7.3 billion baht on revenue of 24.76 billion.
The company expects to spend about 14-15 billion baht in each of the next five years to expand its business with the aim of increasing revenue by 15% each year.
Research by Phillip Capital Securities estimated that CPN would have revenue of 25.97 billion baht this year and 28.97 billion next year.
Its net profit is forecast to stand at 8.3 billion baht this year and rise to 9.5 billion next year.
The broker said CPN’s performance in the last quarter would improve as it would benefit from the high season for retail sales and tourism. People typically enjoy and do more shopping during the festive period.
Revenue from the CentralPlaza WestGate shopping project in Bang Yai will be fully realised, while revenue from CentralFestival EastVille, which opened last week, will start to come in.
Shares of CPN yesterday closed on the Stock Exchange of Thailand at 46 baht, down 25 satang, in trade worth 88 million baht.