NORTHEAST NEW STRATEGIC MARKET

       Leading shopping-mall developer Central Pattana (CPN) regards the Northeast as its new strategic mall location and consumer market, according to the company's president and chief executive, Kobchai Chirathivat.
       The company has already invested Bt4 billion in constructing its new CentralPlaza comlex in Khon Kaen, which will be officially opened on December 3.
       It will also renovate CentralPlaza Udon Thani to attract shoppers from neighbouring provinces, including those from Loas. CPN took over Charoensri Plaza in Udon Thani early this year and renamed it CentralPlaza Udon Thani. The combined cost of the takeover, involving a shopping mall, a hotel and a convention centre, and the renovations is at least Bt5.3 billion.
       CPN's foray into the northeastern region reflects the company's intention to dominate the shopping-mall market in all regions. It recently established its second shopping mall in Pattaya and its first shopping mall in Chon Buri. In 2011, it plans to open its second shopping mall in Chiang Mai and its first in Chiang Rai.
       Kobchai said that CPN's huge investment in the Khon Kaen shopping mall would stimulate consumption and the overall economy, not only in Khon Kaen but also in neighbouring provinces.
       He said Khon Kaen had great business potential because of its large population of people living purchasing power of people living there. Khon Kaen people also have a modern lifestyle.
       Located on 45-rai (7.2 hectares) of land on the Mittraparp-Srichan intersection, CentralPlaza Khon Kaen features about 120,000 square metres of retail space.
       "More than 90 per cent of the retail space at CentralPlaza Khon Kaen has already been occupied by more than 200 retail tenants, including 200 retail tenants, including retail and entertainment anchors such as Robinson Department Store and SF Cinema City," Kobchai said.
       The tenants will spends a combined Bt1 billion to Bt2 billion on their retail-shop decoration.
       The shopping complex will target potential shoppers living in eight or nine neighbouring provinces, including Nakhon Ratchasima and Udon Thani. For CentralPlaza Udon Thani, CPN will increase its size from about 30,000 square metres to more than 100,000 square metres within three years, under the renovation programme.
       Last week, CPN invited potential tenants of CentralPlaza Khon Kaen to visit the shopping mall as it nears completion.
       Nitipon Chaisakulchai, the managing director of Nitipon Group, a leading beauty-clinic operator and a potential tenant, said the expansion of CentralPlaza shopping malls in the Northeast would create new business opportunities for retail tenants in Bangkok that wanted to open upcountry outlets.
       "Our Nitipon clinic branches already cover all prime locations in Bangkok and what want to do next is to expand our retail network upcountry. We also see the Northeast as the next strategic location for our expansion," he said. The company currently operates about 37 Nitipon Clinics, seven of which were opened in the first half of this year.
       SF Cinema City managing director Suvit Thongrompo, whose company operates multiplex autitoriums, said the company had invested Bt200 million to open eifht cinemas at CentralPlaza Khon Kaen with total seating for 1,800. Another Bt50 million would also be spent on a 14-lane blowing alley and 12-room karaoke house at the plaza.
       "We and CPN share the same view about the great potential of Khon Kaen. The competition, especially in the cinema business, is less intense," Suvit said.
       There are currently only two theatre complexes in Khon Kaen, both of them operated by local film distributors. One of them, at Fairy Plaza, has four theatres and the other, at Kosa shopping mall, has only two theatre screens.
       "Khon Kaen is a university city with a huge a number of students. They are the key targets for the cinema business," Suvit said.