Thailand’s largest mall operator plans 110 billion baht expansion
It is for new retail plazas, office buildings and integrated projects, with a focus on key tourist destinations
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[BANGKOK] Central Pattana, Thailand’s largest shopping mall developer, plans to invest more than 110 billion baht (S$4.3 billion) in the next five years to expand its portfolio. This comes amid growth in major cities and a rebound in tourism.
Chief executive officer Wallaya Chirathivat said on Wednesday (Mar 25) that the operator of Central World, Bangkok’s largest shopping mall complex, aims to increase the number of its mixed-used projects from 27 to 33 by the end of 2030.
The investment will go towards new retail plazas, office buildings and integrated projects, with a focus on major cities and key tourist destinations, including Bangkok, Phuket and Chiang Mai.
“We remain highly optimistic about Thailand’s long-term potential, even amid a very challenging period marked by geopolitical tensions,” she said.
“The country has weathered difficult periods before.”
The expansion underscores the company’s confidence that spending in major cities and tourist hubs will hold up, despite the current geopolitical risks to travel demand.
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The South-east Asian nation relies heavily on tourism and domestic spending, and any hit to visitor flows can quickly weigh on foot traffic and retail sales, while weak exports leave fewer buffers for growth.
“We have an emergency plan in case the conflict prolongs longer than expected,” Wallaya said, referring to the situation in the Middle East. “Crises will come and go. We need to sustain our investments to maintain long-term growth.”
The Chirathivat family, which controls Central Pattana, has built one of Thailand’s biggest retail networks of malls, department stores and mixed-use developments.
Its parent company Central Group has also expanded overseas through acquisitions of European luxury assets, including Italy’s La Rinascente and London’s Selfridges, and holds stakes in Germany’s KaDeWe and Switzerland’s Globus.
Central Pattana operates 45 shopping malls, 11 office buildings, 17 hotels and 53 residential projects. Its net income rose 13 per cent to a record 18.8 billion baht last year, with shares up about 15 per cent this year, in line with Thailand’s SET Index’s gain. BLOOMBERG
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