Central invests 83 billion in Central Embassy 2 project

Matichon•Economy•42m ago

Reader Briefing

Central Group and Central Pattana form a joint venture to develop a super-luxury mixed-use landmark at Central Embassy 2 with a total investment value of over 83,000 million baht.

•Central Group and Central Pattana established a joint venture with a 51:49 ownership ratio.
•The joint venture will acquire all shares from Hongkong Land in the Central Embassy 2 project.
•The total investment value for the integrated project exceeds 83,000 million baht.
•The project will combine the existing Central Embassy and the new Central Embassy 2 extension on Freehold land in Bangkok.

Overview

•Central Group and Central Pattana formed a joint venture with a 51:49 ratio to invest in Central Embassy and the future Central Embassy 2 extension.
•The joint venture will purchase all shares from Hongkong Land in Central Embassy 2, increasing the ownership stake from 51% to 100%.
•The joint venture will invest in a 30-year long-term lease for the current Central Embassy, excluding the Park Hyatt Bangkok hotel.
•The total project investment value is over 83,000 million baht, featuring retail, offices, and residences.
•The total Gross Building Area (GBA) will be 600,000 square meters, consisting of 150,000 square meters at the current Central Embassy and 450,000 square meters at Central Embassy 2.
•Central Embassy has operated for over 12 years with an occupancy rate of over 90% and revenue growth of over 10% per year over the last 5 years.
•Central Group and Central Pattana aim to strengthen their real estate business and expand their luxury portfolio to generate long-term investment returns.
•The investment has passed the relevant review and approval processes based on good corporate governance.

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Key Entities

Organization

Central Group(บริษัท กลุ่มเซ็นทรัล)ℹ️

A company that manages luxury retail in over 18 countries and 140 cities and is a global strategic partner for luxury brands.

Central Pattana(บริษัท เซ็นทรัลพัฒนา จำกัด (มหาชน))ℹ️

A company with experience in developing and managing luxury shopping centers such as Central Phuket.

Hongkong Land(ฮ่องกงแลนด์)ℹ️

The entity from which the joint venture will purchase all shares in the Central Embassy 2 project.

Place

Central Embassy(เซ็นทรัล เอ็มบาสซี)ℹ️

A luxury shopping center project that has been operating for over 12 years with a total area of 150,000 square meters.

Central Embassy 2(เซ็นทรัล เอ็มบาสซี 2)

A new extension project on Wireless Road and Soi Somkid in Bangkok with an area of 450,000 square meters.

Park Hyatt Bangkok

A hotel that is excluded from the scope of the joint venture's investment.

Bangkok(กรุงเทพฯ)ℹ️

The city where the Central Embassy and Central Embassy 2 projects are located.

Central Phuket(เซ็นทรัล ภูเก็ต)ℹ️

A luxury shopping center developed and managed by Central Pattana.