Nature of Business

Established on 17th June 1980, to develop and manage large-format and integrated shopping centers, the Company has been listed on the Stock Exchange of Thailand (SET) since 1st March 1995. Its current issued and paid-up share capital is Baht 2,244,000,000, of which the majority is held by Central Holdings Co., Ltd., and Chirathivat family members.

CPN’s core businesses comprise development, management of large-scale shopping complexes, and the provision of retail space for rent, complementing by other supportive businesses under mixed-use concept, which include office building and hotel businesses in a bid to optimize the use of land, diversify income sources, and draw in more customers to shopping centers. CPN also runs related and complementary businesses, such as food centers, multi-purpose convention halls, water parks and recreation parks in some shopping complexes to facilitate shoppers. Services and facilities provided at each complex take into consideration location suitability and the needs of target customers as important factors.

CPN’s project development starts from finding strategic locations, conducting feasibility studies, controlling designs and construction, administering sale, to managing the shopping complexes/office buildings after their commercial opening. Also in the scope of work is the provision of utilities, together with security and cleaning services at each site. Regarding the hotel business, CPN has employed expert hotel management companies to manage its hotels for optimum benefit.

CPN’s business falls into various business groups. Categorized by the source of income, there are six business groups, described as follows:


CPN’s main source of income, the shopping complex business generates over 80% of the total revenue. Income includes rental of retail spaces, utility and security services, cleaning services, rental & services of convention hall, apart from onsite media services at 30 properties – 13 in Bangkok Metropolitan area and its vicinities and 16 in prime provincial areas – of which 25 projects are owned by CPN, with four leased out to CPN Retail Growth Leasehold Property Fund (“CPNRF”). Other sources of income include the management fee at four property projects under CPNRF and a share of profits from investment in CPNRF

In 2015, CPN launched four new projects – 3 new greenfield development projects, namely CentralPlaza Rayong, CentralPlaza WestGate, and CentralFestival EastVille, and 1 acquisition project, namely CentralFestival Phuket.

According to its estimated data, as of 31 December 2015, CPN’s earned a 21% market share of the retail industry in Bangkok Metropolitan area with net leasable area of around 1.6 million sq.m. under the management of CPN and its subsidiaries.


The office building business involves the development of office buildings for rent, whereas the office building business not only complements that of the shopping complex, but also adds value to the project from the optimization of land use and enhances efficiency of car park management. The decision to develop an office building depends mainly on supply and demand for office space at each location. Income from the business comprises rental of office space, rental of retail shops in office buildings, and utility service fees.

At present, CPN runs seven projects of office towers, on the premises of CentralPlaza Lardprao, CentralPlaza Pinklao, CentralPlaza Bangna, CentralWorld (The Offices at CentralWorld), CentralPlaza Chaengwattana, and CentralPlaza Grand Rama 9. For office buildings, CPN owns four projects and manages three projects, two projects under CPNRF (Pinklao Tower A and B Office buildings at CentralPlaza Pinklao) and one project under CPNCG (The Offices at CentralWorld). Tenants of office buildings in CentralPlaza Lardprao, CentralPlaza Pinklao, CentralPlaza Bangna, CentralPlaza Chaengwattana, and CentralPlaza Grand Rama 9 projects are mostly operators of businesses benefiting from shopping mall business, such as tutorial schools, language and music schools, beauty parlors, and securities brokerage firms. The Offices at CentralWorld is different because it is a grade A office building located in the heart of the central business district, so most tenants are leading businesses, both Thai and multinational companies.


The hotel business on the same premises of shopping centers naturally complements the retail business in terms of demand and also adds value to overall project by making the most use of properties for the maximum return on investment. Key principles for consideration of hotel investment include project location, demand, supply, surrounding areas, and the project’s growth potential. The hotel business comprises guest rooms, foods and beverages, seminar rooms and convention centers to serve the growth of the MICE (Meeting Incentive Convention and Exhibition) industry.

Currently, CPN owns two hotels. One is the 259-room Centara Hotel Udonthani (formerly known as Charoensri Grand Royal Hotel, a part of Charoensri Complex, acquired by CPN in April 2009) and the other is Hilton Pattaya Hotel with 302 rooms (situated on top of CentralFestival Pattaya Beach and opened on November 2010). CPN has employed expert hotel management companies, namely Central Plaza Hotel Plc. and Hilton Hotel Corporation, to manage Centara Hotel Udonthani and Hilton Pattaya Hotel respectively for the maximum benefit.


The only residential building project currently managed by CPN is Central City Residence Condominium, a 11-unit condominium on the premises of CentralPlaza Bangna. The lease contract for Langsuan Colonade, the 50-unit serviced apartment, expired on September 30, 2015, and the leased asset was transferred to the lessor on the same date.

Recognizing the potential of mixed-use development of shopping complex projects, the Board approved in September 2015 the investment in condominium projects on the premises of CPN shopping complexes in Chiangmai, Khonkaen and Rayong. These residential projects would maximize the benefit of CPN’s core shopping-complex businesses. To this end, a specialized team of executives, experienced personnel and experts was set up to conduct feasibility studies on the development of residential projects and execute other relevant tasks. Construction of the three condominium projects are projected to start in the second quarter of 2016, with about two years of construction period.


Water parks, ice rink and recreation parks are supporting businesses for shopping complexes, adding variety to features and services of shopping complexes. Not only can they attract more customers to shopping complexes, but also bring happiness to customers and people in surrounding communities. To make this happen, the size of land and space availability in the project are key. After its suspension for renovation, the water park on the sixth floor of CentralPlaza Bangna was relaunched on November 17, 2015. Designed under the theme of Pororo : The Little Penguin, a highly popular Korean animated character, to create new experiences and fun for customers and their families, the park was named “Pororo Aquapark Bangkok”. As for a recreation park, “Central Park”, a large-scale recreational park on the premises of CentralPlaza Rama 2, is open to the public and consists of a health park, a children playground, an activity area, and renowned restaurants.


Food Centers are considered essential to shopping complexes. They are intended for providing customers with a wide variety of economical and ready-to-serve dishes. CPN earns sizeable income from the sale of food and beverage in food centers.