- Support Thailand as a world-class shopping and tourism destination
- Promote Central Village’s goal to become ASEAN’s number one outlet under the concept “World-Class Outlet with Thai–Japanese Hospitality”
BANGKOK — Thai property-development leader Central Pattana Public Company Limited (CPN) has attracted foreign investment from Japan’s top-tier real estate developer Mitsubishi Estate Company Limited through its Singapore-based subsidiary Mitsubishi Estate Asia Pte. Ltd.. As one of the world’s most prestigious real-estate developers, the company has successfully achieved prominent real estate developments across the globe, as well as 9 outlets across Japan, such as Gotemba, Rinku and Shisui, which have developed and managed by the affiliated company of Mitsubishi Estate Company Limited. Under the agreement, CPN is a majority shareholder with a 70% stake in CPN Village Company Limited, while the Japanese property developer shares the remaining 30%. This recently penned deal will bring total of Bht 1 billion baht investment to Thailand. This investment reflects to the confidence of the Japanese investor believing in Thailand’s and CPN’s potential. The two allies hope to push Central Village, Thailand’s first international luxury outlet, to the next level of success and towards the position of ASEAN’s best luxury outlet with the idea of “two nations, one success.”
In terms of progress, the first phase of Central Village has seen nearly 100% of its luxury brand stores opened. The retailer continues to boost visitors’ spending by offering on-top discounts on brand-name products, which are already 35%–70% off year-round. It will also promote tourism and trade between Thailand and Japan with activities such as roadshows and Thailand–Japan Expo.
CPN’s President and Chief Executive Officer, Mr. Preecha Ekkunagul said, “Today marks a monumental leap for CPN towards its strategic goal to forge partnerships with global business leaders, especially ones with considerable expertise in their industries, to jointly create and deliver new initiatives to accommodate the contemporary fast-changing and highly dynamic customer lifestyles and preferences. Through lengthy periods of discussions, we are pleased to secure an experienced global industry leader as a strategic partner for Central Village, the first world-class luxury outlet in Thailand. The remarkable performance of Central Village, since its opening in August 2019, provided the confidence and assurance for a world-class operator like Mitsubishi Estate Asia to invest in Central Village and, together with CPN, will elevate the project to new levels of success.
Mitsubishi Estate Asia’s investment in ‘CPN Village Company Limited’, which garnered over 1 billion Baht of capital into Thailand, reflects the country’s attractiveness for foreign tourists and solidifies the long-term growth potential of the Thai economy and tourism. The collaboration between Thailand’s CPN and Japan’s Mitsubishi Estate Asia, two real estate powerhouses in their respective countries, also supports Thailand as a world-class shopping and tourism destination under the concept of “Two Nations, One Success”. This in turn will enhance the position of Central Village, Thailand’s first luxury outlet, as the number one luxury outlet in Southeast Asia.”
“The first phase of Central Village operates under the concept ‘Bangkok Luxury Outlet.’ Brands that have already opened their stores include Coach, Club21 (Outlet by Club 21), Ermenegildo Zegna, Kate Spade New York, Kenzo, MAX&Co., Michael Kors, Polo Ralph Lauren, and Salvatore Ferragamo. These retailers have reported meeting their sales targets. The complex is also achieving its traffic goal. Shoppers enjoy year-round discounts of 35%–70%; however, we are also offering on-top seasonal discounts throughout the year. CPN will also look into having a Central Village in other top locations across Thailand,” he explained.
CPN President and CEO added that this 70:30 joint venture with Mitsubishi Estate Asia, in which CPN is a majority shareholder, will strengthen Central Village in the following three ways:
- Mitsubishi Estate will augment the management and service of Central Village. We will also be able to leverage on our unique strength in service and hospitality. They know how to manage the Asia-Pacific markets and customers well. Their outlets are already the most popular outlet destinations among Thai travelers. This collaboration will enable Central Village to become ASEAN's number one luxury outlet under the concept of 'world-class outlet with Thai–Japanese hospitality.
- There will be exchanges of brands between Thailand and Japan. This partnership opens up doors for international brands, especially Japan’s leading brands that Thai people adore to be added to the complex’s portfolio. It also promotes the export of Thai brands to Japan.
- The deal will attract Japanese tourists and expats to Central Village, as well as boost tourism between the two countries, through tourism-promoting activities and joint promotions, such as a Thailand–Japan exposition.
Yutaro Yotsuzuka, Managing Director of Mitsubishi Estate Asia Pte. Ltd., said, “Our investment in this project is part of our effort to penetrate the Thai real estate market. International property-development investment is our expertise. With this deal, we’re opening a new portfolio in outlet in Thailand. We considered the following three factors when we decided to enter into this Central Village joint venture with CPN:
- Thailand’s promising potential in terms of investment opportunities, infrastructure and tourism: Thailand enjoys the most progressive tourism growth in ASEAN. It is estimated that the number of travelers visiting Thailand in 2020 will continue to grow at about 4%, which is this year’s rate. There are also positive signs from the return of Chinese tourists and the increase of Indian tourists.
- Our confidence in CPN as Thailand’s number one retail property developer: CPN is publicly traded on the Stock Exchange of Thailand. It is a leader in Thailand’s retail industry and the highest valued company in the real estate segment. It has managed to stay a member of the Dow Jones Sustainability Index (DJSI) for the second consecutive year per the recently released DJSI World 2019 list and for the sixth consecutive year per the Emerging Markets list. This achievement reflects its potential for continuous growth. Moreover, CPN’s ‘Center of Life’ vision also goes hand in hand with our ‘A Love for People / A Love for the City’ motto. We truly believe that CPN is the most suitable partner in our endeavor to penetrate the luxury outlet market segment in Thailand.
- The success of Central Village: The project is adjacent to Suvarnabhumi International Airport. This arguably busiest airport in Southeast Asia serves Bangkok, one of the world’s most popular destinations. Central Village is a completely new business model in Thailand. Its modern Thai village setting is a unique selling point among world travelers. Simply put, there are so many highlights and so much potential to grow. Its operator has also handled numerous challenges professionally, and we believe that Mitsubishi Estate Co. Group will further enhance the success of Central Village.
“At the moment, Japanese investors are among the top three investing nationalities in Thailand. Additionally, we are the top investing nationality in the Eastern Economic Corridor (EEC), which is Thailand’s fastest-growing economic zone, with an investment value of 100 billion baht or almost half of all investment in the EEC. Furthermore, Japanese consumers love and understand brand-name products. Japan has been a brand-name destination for Thai travelers for many, many years. Thai and Japanese people have also enjoyed good relations for a long time,” Yotsuzuka added.
Central Village operates under the concept “Bangkok Luxury Outlet.” It is CPN’s latest retail project and Thailand’s first and most comprehensive outlet of international luxury brands. Located on a 100-rai plot of land adjacent to Suvarnabhumi International Airport, the project offers 40,000 square meters of retail space complete with over 150 domestic and international luxury brands. Most of the retailers have never opened an outlet store in Thailand before. Around 60 brands have opted to have their outlet stores exclusively at Central Village. The outlet’s goal is to become a new destination of world-class shopping that meets the needs of every lifestyle. Central Village offers daily discounts of 35%–70%. Shoppers also enjoy on-top seasonal discounts, as well as indulge in the manicured greenery and modern Thai architecture. The outlet succeeded its traffic target of 17,000 visitors per day. The complex is delivering an authentic luxury outlet shopping experience to those in and around Bangkok.