CPN expects slower growth in rental revenue (CENTRALPLAZA LADPRAO)

Central Pattana expects revenue growth at its shopping mall chain to drop to 8-9 per cent this year with the six-month closing of Central Plaza Lat Phrao for renovations.

Executive vice president Nattakit Tangpoonsinthana said yesterday that revenue growth at the company averages 20-25 per cent a year on rent increases and store openings.


But this year the company will lose income when the Lat Phrao branch is shut from April-October. The company also has no plans to open more branches this year.


However, next year revenue will return to average growth because the company will raise rents at Lat Phrao by at least 20 per cent when the plaza reopens in October and it will also expand with new stores.


Central Plaza Lat Phrao has total retail space of 180,000 square metres, accounting for 13.8 per cent of Central Pattana's total of 1.3 million square metres. Among the group's properties, Lat Phrao ranks second in terms of shoppers, following CentralWorld.


The budget to renovate Lat Phrao is Bt2.4 billion.


The company has also set aside a marketing budget of Bt700 million to hold more than 1,000 events at all its shopping centres this year.


The first event will be a celebration of Chinese New Year's and Valentine's Day, running from February 4-March 4 at all of its branches. The joint celebration will use up Bt100 million of the annual budget.


The campaign is expected to increase customer visits by 15-20 per cent and retail sales by 20 per cent, he added.