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. On this occasion, Dr. Kobsak Pootrakool Deputy Secretary – General to the Prime Minister including Top executives from both sides such as Mr. Prin Chirathivat, Mr. Suthilaksh Chirathivat, Ms. Wallaya Chirathivat, Mr. Suthipak Chirathivat and Mr. Atsushi Taketani from JETRO attend the event.

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.This 70:30 joint venture will strengthen Central Village in the following three ways:

  1. 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.
  2. 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.
  3. 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: 1) Thailand’s promising potential in terms of investment opportunities, infrastructure and tourism 2) Our confidence in CPN as Thailand’s number one retail property developer – 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. 3) 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.

“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,” Mr. Preecha explained.