Central Pattana Plc (BKK:CPN), retail developer and SET-listed property, is planning to launch 3 billion baht in projects using land plots close to its shopping malls across Thailand. The company hopes the projects, which are residential, will boost annual revenue growth by 15% in the housing sector starting in 2018.
Kree Dejchai, executive vice-president for CPN’s special project development, says the company is planning to launch four or five residential projects with a total worth of 3 billion baht in the second half of 2016 and next year.
Mr. Kree said CPN is aiming for 3 billion baht in growth in 2019, which will be the second year of residential development growth for the company. CPN is interested in five land plots near its shopping malls in Bangkok and other provinces.
The three projects will be located in Khon Kaen, Chiang Mai and Rayong, and are worth 900 million baht, 925 million baht and 910 million baht respectively.
The site in Chiang Mai will include a 26-story building with a total of 400 units, which are already sold out. The projects in Rayong and Khon Kaen will have 419 and 408 units respectively. The sales rate for these two projects has now exceeded 85%.
Reportedly, the combined investment for the three projects is 1.62 billion baht.
Mr. Kree said that despite the condo market slowing in most provinces, CPN achieved a high sales rate with prices of 73,000 baht per square meter in Khon Kaen and Chiang Mai. He believes the company’s success is partly due to the fact that the units are so close to shopping malls.