CPN speeds up development spurt

       Central Pattana Plc (CPN), the country's largest commercial property developer,is speeding up expansion with plans for at least eight new projects over the next six years, bringing its total to almost 30 shopping centres by 2016.
       Naris Cheyklin, senior executive vicepresident for finance and accounting,said the Central Group affiliate wanted to grow in line with the country's econ-omy, which is expected to return to an upward trend.
       As well, he said, if the company's first overseas retail development is successful, it would accelerate overseas expansion. CPN is committed to expanding outlets in China through its own developments and by acquisitions.
       "Investing in China at the moment has lower business risk than in Thailand.The Chinese economy is now 10 years ahead of Thailand," Mr Naris told an analysts' briefing yesterday.
       Between 2001 and 2005, CPN opened four new shopping centres and made plans to add eight more between 2006 and 2010.
       Mr Naris said CPN planned to spend 5.84 billion baht from 2010-12 to develop projects, including one on the site of the the former Pre-Cadet School on Rama IV Road next to the Suan Lum Night Bazaar, and in Chiang Mai.
       The company will enter a lease agreement with the Crown Property Bureau after the completion of site clearing on Rama IV Road. It will develop a shopping centre on its own but will join with some partners to develop some office buildings. CPN has contacts from foreign investors in Japan and some Western countries to jointly develop the office blocks.
       CPN will finance its future expansion by using operating cash flow, bank loans or debenture issues and its property fund.
       The SET-listed company will transfer its assets in Chiang Mai and another retail project to the listed CPN Retail Growth Fund (CPNRF) to raise an additional 3-4 billion baht next year. This excludes funds to be raised from the sale of its Central Pin Klao mall, one of the company's best performers, to the fund in November.
       During the first half, CPN's revenues grew by 31% year-on-year to 2.97 billion baht and net profit rose 13% to 587 million. The increasing revenues were driven by the opening of four new pro-jects in Chaeng Watthana, Pattaya, Udon Thani and Chon Buri.
       Net profit did not grow much because the company faced additional operating costs and depreciation and amortisation of the new projects in addition to higher sub-lease payments for Central Plaza Lat Phrao after the renewal of its sublease agreement. The company expects its revenues this year to grow above its earlier projection of 25%.
       CPN shares closed yesterday on the Stock Exchange of Thailand at 20.70 baht, down 20 satang, in trade worth 54.08 million baht. CPNRF units rose 10 satang to 9.15 baht, in trade worth 3.9 million baht.