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 CENTRALPATTANA’s petition. CENTRALPATTANA, 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 CENTRALPATTANA, 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
1. 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.
2. 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 mn and the purpose of the transaction was for long-term investment with no intention to be involved in the management of DTC.
3. The Extension of Land Leases of Central Rama 2
Central Pattana successfully finalized extension of land leases for Central Rama 2 for an additional 30 years, expiring in 2055 and 2060 (Partial). The transaction brings forth the opportunity to continuously develop the shopping center. Central Pattana 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 Central Rama 2.
4. 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 Central Pattana 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.
5. The Acquisition of Shares in Grand Canal Land Public Company Limited or “GLAND”
CPN Pattaya Co., Ltd., (“CPN Pattaya”), a wholly owned subsidiary of Central Pattana, 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 mn. 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.
6. Launched Three Residential Projects
Central Pattana launched two condominium projects including: 1) PHYLL PHAHOL 34 - the first low-rise condominium in Bangkok, with designed concept of “Live Everyday in Urban Hideaway”, the project is located at the entrance of Phaholyothin 34 Rd., conveniently accessible via the Senanikom skytrain station on the green line and in close proximity to Central Ladprao and Kasetsart University; and 2) ESCENT UBONRATCHATHANI - which is located next to Central Ubon. Lastly, the Company launched NIYHAM BOROMRATCHACHONNANI - the first low-rise residential, located on the Boromratchachonnani Rd., 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.
Milestone Development in 2019
1. 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.
2. The 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 Malaysia’s largest mixed-use development complexes located in the city of Shah Alam, Selangor State, 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.
3. 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.
4. Continued Investment in Mixed-use Development
Central Pattana prepared to invest in mixed-use projects in high potential locations for long term sustainable growth. 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 to enhance Central Pattana’s latency to compete as well as expand revenue base from land bank at Paholyothin Rd. Following by launched ESCENT VILLE CHIANGMAI, the third condominium project next to Central Chiangmai after the first two were sold out.
5. Investment in New Businesses to Sustain Company Long-term Growth
To accommodate customers’ ever-changing lifestyles needs and diversify its sources of income, Central Pattana invested in Grab Thailand through a joint venture company with Central Retail Corporation Public Company Limited (CRC). The objective is to invest in Grab businesses to expand into new services and stimulate increases in mall traffic, as well as food delivery service which could enhance tenant’s sales.
Central Pattana debut first two “Common Ground Co-working Space” in Thailand at the G Tower office building located in Rama 9 next to Central Rama 9, and at Central World Offices. Common Ground Co-working Space could serve 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.
6. The Opening of Central Village and Announcement of World-class Project Partner
Central Pattana launched the first luxury outlet in Thailand and the 34th shopping center of the Company. 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 sq.m. After Launching, Mitsubishi Estate Company Limited (MEC) through its Singaporebased subsidiary MEA, one of the world’s most prestigious real-estate developers, became a project partner. 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.”
7. The Lease of Assets to CPNREIT
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. Further, the Company is preparing to extend the lease of Central Rama 2 project to CPNREIT for an additional 30 years ending 2055. The leases of the four assets and the extension of the lease term at Central Rama 2 is expected to be completed within 2020.
Milestone Development in 2020
1. Impact from COVID-19 Pandemic and Mitigation Plan
As a result of COVID-19 pandemic situation, Central Pattana has strictly complied with the announcement from government sector limiting risk area to protect the pandemic situation. The Company implemented proactive measures to manage the situation rapidly changed by considering all stakeholders.
- Shopping Centers
Temporary closure of shopping centers totaling of 34 locations, comprising 33 malls in Thailand during March 22 - May 16, 2020 and Central i-City in Malaysia during March 15 - May 3, 2020. To facilitate safety and convenience for customers, Central Pattana still provide necessary services in the shopping centers. The Company has initiated “Central’s Safety and Hygiene Plan” to enhance cleanliness and highest safety measures practical. Moreover, the Company implemented Chat and Shop system, call center, Pick-up Counters, and drive through pick-up stations to facilitate safety and convenience for customers including preventive measures in shopping centers.
Business operated as normal with high standard of defensive measures, even though some of office tenants’ employees applied Work from Home protocol during lock down. However, number of office workers in office buildings had steeply increased after the restriction had released.
Temporary closed of two hotels since April 2020. Centara and Convention center Udonthani re-opened again on July 1, 2020. Hilton Pattaya Hotel took the opportunity to accelerate the renovation from May - November 2020, to enhance operational efficiency as well as prepare upon re-opening.
- Residential Projects
Launched new projects through out the year. The Company offer both project physical visiting and via virtual showroom on mobile application. All projects got very good feedback, especially low-rise projects which offer the solution for “New Normal” lifestyle.
2. Central Rama 2 Lease Renewal for CPNREIT
Central Pattana renewed the lease of Central Rama 2 with CPNREIT for another 30 years, from 2025 to 2055, the gain from this transaction was booked in financial statement as a special item. According to uncertain situation of stock market, two assets injection to CPNREIT was under reviewed and should be concluded by 2021.
3. Launched Seven Residential Projects
Four low-rise projects including: 1) ESCENT TOWN PHITSANULOK - townhome format, located next to Central Phitsanulok; 2) NINYA KALLAPAPRUEK - twin home format, located on Kanlapaphruek Rd., near Bangkhae Rd., Petchkasem Rd. and Kanchanaphisek Expressway; 3) NIRATI CHIANGRAI - single house format, located only four km. away from Central Chiangrai; and 4) NIRATI BANGNA - single house format, located in area of Central Bangna, Central Village, Suvarnabhumi Airport, and other schools, hospitals and expressways.
Three condominiums projects including: 1) ESCENT RAYONG II - the second condominium, located next to Central Rayong; 2) ESCENT KORAT - the second condominium project, located next to Central Korat, first project of these two locations got very good feedback after launching and were sold out quickly; and 3) ESCENT HATYAI - the first condominium next to Central Hatyai.
4. Member of the Dow Jones Sustainability Indices (DJSI)
Central Pattana has been selected to be a member of Dow Jones Sustainability Indices (DJSI). Central Pattana is the only property developer company and one of twelve companies in Thailand that has been selected to be a membership of DJSI World for the third consecutive year (2018-2020) and DJSI Emerging Market for the seventh consecutive year (2014-2020).