Milestone Development in 2017
Purchase of Shares in Dara Harbour Co., Ltd. for Land Sublet Right to Support Business Expansion
The Company purchased 26 million shares, equivalent to 65% ownership, of Dara Harbour Co., Ltd. from Property Perfect Public Company Limited, with the purpose of acquiring land sublet right to support the business expansion in Si Racha district, Chonburi province. The agreement was finalized on July 14, 2017, after the Board of Directors meeting No. 3/2017 on May 12, 2017 approved the transaction.
Case Closed on the Compensation Regarding the Fire Incident at centralwOrld from Deves Insurance Public Company Limited
The Supreme Court gave the verdict on the case regarding the fire incident at centralwOrld in 2010 from Deves Insurance Public Company Limited, based on the Industrial All-Risk policy, to not permit the petition appeal and reject CPN’s petition. CPN, however, previously purchased the terrorism insurance with the sum insured of Baht 3,500 million and subsequently filed for the claim through its subsidiary, Thai Business Fund 4, which holds the leasehold right for centralwOrld. The claim was received in September 2017.
Central Nakhon Ratchasima, the 31st shopping mall
was inaugurated on November 3, 2017 and is the largest mixed-use development project in the region under the banner “Mahanakorn of Isan”. The project comprises a shopping mall, hotel and condominium situated on a 65-rai land with total investment over Baht 5,100 million with the intention of becoming the lifestyle innovation center, as well as the new center of life, for the Korat and Isan people. The exterior design was inspired by the Mahahong flower through white and a shade of orange and pink colors, whereas the interior was designed under the concept of “Seasons of Life”, providing the colorful and dynamic 5 seasons ambience with modern interactive features.
Central Mahachai, the 32nd shopping mall
was inaugurated on November 23, 2017 to be the center of communities in the Samut Sakhon and Samut Songkram provinces, as well as serve as the destination for Bangkokians, commuters, tourists and people of nearby provinces. Situated on the Rama 2 Road on a 100-rai land with over Baht 3,400 million of total investment, the project was designed under the concept of “Mahavana”, portrayed as a large ship, with the ambience of fisherman’s village and seaport to symbolize Samut Sakhon. Furthermore, the “EATALAY” zone, the first-of-its-kind seafood market zone, undoubtedly marks the project to be “The Best Highway Destination” to fully revitalize your energy with complete and convenient facilities including clean restrooms.
Pre-sales Launch of 3 Condominium Projects in Nakhon Ratchasima, Chiang Rai and Chiang Mai
CPN Residence Co., Ltd., a subsidiary of CPN, launched 3 condominium projects on the land next to the Company’s shopping malls, namely Central Nakhon Ratchasima, Central Chiangrai, and Central Chiangmai. All three projects, expected to be completed and the ownership of which transferred by 2019, attracted great responses due to their outstanding locations, layout and designs that match the customers’ preferences.
The Conversion of CPN Retail Growth Leasehold Property Fund (“CPNRF”) into CPN Retail Growth Leasehold REIT (“CPNREIT”)
The Unitholders’ Meeting of CPNRF on August 28, 2017 approved the conversion of CPNRF into CPNREIT and the lease of Central Pattaya (certain parts) and Hilton Pattaya Hotel to CPNREIT for a period of 20 years, ending August 31, 2037, for the net asset price of Baht 11,908 million. Consequently, CPN REIT Management Co., Ltd., a subsidiary of the Company, was established to be the REIT manager. CPNREIT was established on November 29, 2017 and assumed the lease of Central Pattaya (certain parts) and Hilton Pattaya Hotel on December 1, 2017. The first trading day for unit trust of CPNREIT was on December 14, 2017.
Milestone Development in 2018
The opening of IKEA Bangyai at Central WestGate
IKEA Bangyai, the latest flagship superstore and the largest IKEA store in Southeast Asia with an area of more than 50,000 sq.m., features a unique format with multiple entries and exits at three levels seamlessly integrated with Central WestGate. Through the strategic partnership with IKEA, a world-class furniture brand, Central WestGate cements its position as the super-regional mall in western Bangkok and support the urbanization in the Bangyai area.
Purchase of ordinary shares in Dusit Thani Public Company Limited
The Board of Directors Meeting No. 4/2018 on May 9, 2018, approved the purchase of 194,926,920 ordinary shares in Dusit Thani Public Company Limited (“DTC”), or equivalent to 22.93% of total shares issued and paid-up of 850,000,000 shares. The transaction amount was Baht 2,141.4 million and the purpose of the transaction was for long-term investment with no intention to be involved in the management of DTC.
The extension of land leases of CentralPlaza Rama 2
CPN successfully finalized extension of land leases for CentralPlaza Rama 2 for an additional 30 years, expiring in 2055 and 2060 (some parts). The transaction brings forth the opportunity to continuously develop the shopping mall. CPN is currently preparing the proposal of terms and conditions for the land and property sublet rights to CPN Retail Growth Leasehold REIT (CPNREIT) to consider the extension of the leasehold of CentralPlaza Rama 2.
The opening of Central Phuket Floresta
Opened on September 10, 2018 and connected to the Central Phuket Festival, the entire complex is known as Central Phuket, the largest shopping complex in southern Thailand, located on a 111-rai land in the bustling downtown of Phuket as the first luxury flagship for CPN that impeccably combines lifestyle experience and relaxation to become the “Magnitude of Luxury & Leisure Resort Shopping Destination” not only for local communities but also foreign tourists. It also features the world’s premier attractions, namely 1) TRIBHUM, the virtual 3D interactive walkthrough experience; 2) Aquaria, which features over 25,000 marine species and 3) Tales of Thailand, the center of cultural heritage, from past to contemporary, from all parts of Thailand.
The acquisition of shares in Grand Canal Land Public Company Limited or “GLAND”
CPN Pattaya Co., Ltd., (“CPN Pattaya”), a wholly owned subsidiary of CPN, acquired shares of GLAND equivalent to 67.53% of total issued and paid-up shares, which consists of 50.43% acquired from a group of major shareholders and the remaining 17.10% from the tender offer at Baht 3.10 per share, for a sum of Baht 13,607 million. The acquisition of shares in GLAND, a property developer for real estate projects for sale and for lease, which includes office buildings, hotel, residential projects and retail area, as well as projects under development and land bank in several locations, unlocks the potential to develop mixed-use projects based on the business strategy and create long-term returns to shareholders.
Pre-sale launch of the Phyll Phahol 34 condominium project
The first low-rise condominium project in Bangkok Metropolitan Area, featuring a total of 358 units in 4 buildings with 8 storeys each, including a clubhouse and swimming pool designed under the concept of “Live Everyday in Urban Hideaway”. The project is located at the entrance of Phaholyothin 34 Road, conveniently accessible via the Senanikom skytrain station on the green line and in close proximity to Central Lardprao and Kasetsart University.
The joint-venture agreement to run a co-working space business in Thailand
CPN announced a joint venture agreement with Common Ground Works Sdn. Bhd. and MSB Asia Ltd. from Malaysia to establish a joint venture entity, with an ownership structure of 51%, 29% and 20% respectively, to operate the co-working space business in Thailand.
Launch of the Niyham Boromratchachonnani single-detached housing project
The first low-rise residential project developed by CPN Residence is designed with a modern classic uniqueness with the “Niyham”, or definition, of “perfection exists”, which emphasizes on privacy coupled with convenience through a complete range of amenities provided inside homes. The project is located on the Boromratchachonnani Road, conveniently accessible via both the elevated highway and the Si Ratch Expressway - Bangkok Outer Ring Road and close to the light red rail line, as well as within commuting distance to Central Pinklao and Central Salaya.
Pre-sales launch of ESCENT Ubonratchathani condominium project
Located next to Central Ubonratchathani, the condominium project consists of one building with 14 storeys and the interiors are designed under the concept of Modern North East to fulfill the lifestyles of residents with happiness.
Milestone Development in 2019
The Opening of “TRIBHUM: The Mystic of Three Worlds”
TRIBHUM is the world’s first 3D walkthrough theme park solidifies the position of Central Phuket Floresta as “The World’s Must Visit Destination in Thailand” to provide meaningful and enjoyable experiences about the infamous Thai myths and folklores, portrayed in contemporary presentations, to both local and foreign visitors. The iconic attraction is a well-blended component of Central Phuket as the world’s shopping and leisure destination of choice.
The Soft Opening of Central i-City
Central i-City is the first international shopping center and the 33th shopping center of Central Pattana. Central i-City is a part of the i-City Ultrapolis, one of the country’s largest mixed-use development complexes located in the city of Shah Alam, Selangor State, Malaysia, and is conveniently accessible from the districts of Shah Alam, Klang, and Kuala Lumpur. Central Pattana and i-Berhad Group, a leader in real estate development in Malaysia, have jointly developed Central i-City, through 60% and 40% investment proportions respectively.
Announcement of Dusit Central Park Project
Central Pattana and Dusit Thani Public Company Limited (DTC) have jointly announced the inauguration of Dusit Central Park, the most prominent mixed-use development project at the heart of Bangkok central district located across a 23-rai land at the corner of Silom Road and Rama 4 Road and seamlessly connected with the mainstream mass transit systems, such as the BTS skytrain and the MRT subway. The project comprises the Central Park shopping complex, the Central Park Offices, the brand-new Dusit Thani Bangkok Hotel and a residential project under the brands “Dusit Residences” and “Dusit Parkside”. The construction of the project is underway and is expected to be progressively completed and open for service from 2023 onwards.
Investment in Bayswater Company Limited (Bayswater)
On May 17, 2019, Central Pattana acquired ordinary shares in Bayswater from BTS Group Holdings Public Company Limited (BTS) accounted for 50% of the total issued and sold shares of Bayswater. The investment could enhance Central Pattana’s latency to compete as well as expand revenue base from land bank at Paholyothin Road where potentially develop the Mixed-use project in the future including boost up management efficiency and reduce risks of entering the share acquisition made by others.
Investment in Grab Thailand
On May 30, 2019, Central Pattana invested in Chipper Global Limited through a subsidiary company namely Central Pattana Chiangmai Company Limited with 100% stake. Implying an investment in Porto Worldwide Limited, a joint venture company between Central Retail Corporation Public Company Limited (CRC) and Central Pattana with 33% stake through Chipper Global Limited. The objective is to invest in Grab businesses in order to enhance channel for business expansion including increase traffic as well as food delivery service which could enhance tenant’s sales.
Pre-sales Launch of ESCENT PARK VILLE CHIANGMAI Condominium Project
The third condominium project next to Central Chiangmai, interior was designed under Colonial style together with the greenery view of courtyard. This project consists of 2 buildings with 8 storeys condominium, a parking building with 4 storeys, a club house, and a multi-purpose building.
The Opening of Central Village (1 phase)
Central Village is the first luxury outlet format in Thailand and the 34th shopping center of Central Pattana. The design expressed on Thai identity architecture impeccably harmonized with the serene outdoor nature to create a shopping destination located close to Suvarnabhumi Airport offering more than 130 shops serving both local and tourist customers. The first phase accounted for approximately 20,000 sqm.
The Opening the first Common Ground Co-Working Space in Thailand
Central Pattana debut the first “Common Ground Co-working space” in Thailand at the G Tower office building located in Rama 9 next to Central Rama 9. The 4,500 sqm. co-working space is a joint venture between Central Pattana and Common Ground Malaysia to create destination in the New CBD of Bangkok, serving new generation of workers and start-up entrepreneurs whose preferences are not limited to home and office, and are immersed with work and living integration with the shopping center. Furthermore, Central Pattana targets to open another new Common Ground Co-working space at The Offices at centralwOrld.
The Lease of Assets to CPNREIT
On October 17, 2019, Central Pattana agrees to lease out new assets to CPNREIT comprising four shopping centers, namely Central Marina (Partial) with a lease tenure of 15 years ending 2035, Central Lampang (Partial) with a lease tenure of 22 years ending 2041, Central Surat (Partial) with a lease tenure of 30 years, and Central Ubon (Partial) with a lease tenure of 30 years, with expected completion of the four transactions within 2020. Further, Central Pattana is preparing to extend the lease of Central Rama 2 project to CPNREIT for an additional 30 years ending 2055. The leases of the 4 assets and the extension of the lease term at Central Rama 2 is expected to be completed within 2020, with the total value of all transactions up to THB 48,560 mn.
Mitsubishi Estate Asia Pte. Ltd. Entered a Partnership Agreement in Central Village
Mitsubishi Estate Company Limited (MEC) through its Singapore-based subsidiary MEA, one of the world’s most prestigious real-estate developers, the company has successfully achieved prominent real estate developments across the globe, as well as nine outlets across Japan, such as Gotemba, Rinku and Shisui, which have developed and managed by the affiliated company of MEC. Under the agreement, Central Pattana is a majority shareholder with a 70% stake in CPN Village Company Limited, while MEA shares the remaining 30%. The two allies hope to push Central Village to the next level of success and towards the position of ASEAN’s best luxury outlet with the idea of “Two Nations, One Success.”