Lat Phrao facelift may halve CPN gains

Central Pattana Plc (CPN), the SET-listed property and retail development arm of the Central Group of Companies, expects its revenue this year to grow by 8-9%, lower than the double-digit rate last year because its Lat Phrao branch will be closed for six months for renovation.


Central has formed a business alliance with the Tourism Authority of Thailand and companies in the hotel, hospitality and food and beverage businesses in its Chinese NewYear Sales 2010 campaign.
As well, the company will open no new retail outlets this year, said Nattakit Tangpoonsinthana, executive vice-president for marketing.

CPN will close the 30-year-old Central Plaza Lat Phrao and start renovating it in April. It will reopen in October, in time for the peak sales season of the year. The company plans to spend 2.4 billion baht to renovate the complex, under a "green design" concept.

"Central Plaza Lat Phrao has total retail space of about 180,000 square metres or about 13.8% of CPN's total retail space. It contributes the second highest sales and shopper numbers to CPN, after CentralWorld," he said.

The rental fees at Central Plaza Lat Phrao are more than 2,000 baht per square metre per month but CPN will increase rents by 15-20% after the facelift.

Mr Nattakit expects its sales will grow by 20-25% on average again in 2011 after the renovation of Central Plaza Lat Phrao and the opening of new stores.

Though its sales will grow by a single-digit rate, the company will spend about 700 million baht on its marketing budget this year, on par with last year's level. It will join with partners in more marketing events, aiming to raise the number of events at all Central outlets by 15% from last year's 1,000 events.

The company yesterday announced it would form a business alliance with the Tourism Authority of Thailand and companies in the hotel, hospitality and food and beverage businesses in its Chinese New Year Sales 2010 campaign.

Of the total 700-million-baht marketing budget, about 100 million baht will be spent on the Chinese New Year campaign which will be held from Feb 4 to March 4, at all of its branches.

Shares of CPN closed yesterday on the Stock Exchange of Thailand at 19.80 baht, down 40 satang, in trade worth 42.5 million baht.