Mitsubishi Estate to run Bangkok’s luxury outlet mall in stake partnership with Central Pattana
BANGKOK, NNA - Thailand’s largest mall operator Central Pattana Public Co. (CPN) has roped in a formidable Japanese partner, Mitsubishi Estate Co., to manage Central Village, its first luxury outlet mall targeted at international visitors in Bangkok.
Mitsubishi Estate Asia Pte. Ltd., a Singapore-based subsidiary of Mitsubishi Estate., which has acquired a 30 percent stake in the 40,000-square-meter mall with 150 shops near Suvarnabhumi Airport, is bringing its vast expertise in Japan to optimize shopping experience for customers.
CPN, which owns and manages retail complexes all over Thailand as an affiliated company of the Central Group of Co., believes Mitsubishi Estate is well-placed to transform the recently launched Central Village into a must-visit shopping destination in the region.
In Japan, Mitsubishi Estate owns and manages commercial and retail properties too, such as those in upmarket Marunouchi business district in Tokyo and the popular Gotemba Premium Outlets mall in Shizuoka.
The synergy of the two partners, which inked an agreement on Tuesday, will also see mutual promotion of Thai and Japanese brands as well as tourism in both countries, according to a media statement.
On Mitsubishi Estate’s investment of over 1 billion baht ($33 million), Yutaro Yotsuzuka, managing director of Mitsubishi Estate Asia, said at a press conference on Tuesday: “Our investment in this project is part of our efforts to penetrate the Thai real estate market. With this deal, we are opening a new portfolio for a luxury outlet in Thailand.”
The cooperation, which sees CPN holding a majority stake of 70 percent, marks the first time Mitsubishi Estate is investing in a Southeast Asian retail outlet.
Among its nine premium malls in Japan, the Gotemba Premium Outlets complex located near the foot of Mt. Fuji, is the most famous, attracting over 10 million visitors each year, said Yotsuzuka.
Unveiled in end-August, the sprawling Central Village offers attractive prices and discounts for premium international labels and Thai brands of trendy and sport fashion, lifestyle products, toys and appliances. It also has food outlets and facilities for arts and cultural events.
Within a few months, the village-like cluster with a modern Thai look has managed to draw over 17,000 visitors each day, of which 35 percent are foreigners, Preecha Ekkunagul, CPN president and CEO told the media at the press conference.
Yotsuzuka revealed that Mitsubishi Estate is exploring more joint projects with CPN such as an office building and shopping malls. Being considered is a luxury outlet outside Thailand, Preecha added.
In fact, the Mitsubishi Estate group had already entered the property market in Thailand. It partnered realtor AP (Thailand) Public Co. to establish Premium Residence Co., which has a portfolio of 16 condominium projects. The Japanese firm had also launched One City Centre office building in May with local firm Raimon Land Public Co.
The Central Group is one of the largest private commercial conglomerates in Thailand, with business subsidiaries ranging from department stores and restaurants to hotels and retail management and development under CPN. As of third quarter of 2019, CPN held 169.42 billion baht worth of assets including Central malls and residential projects such as Phyll Phahol 34 and Escent Park Ville Chiangmai.