Central Pattana revive talks on Charoensri complex purchase

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Central pattana revives udon talks
By The Nation
Published on March 11, 2009



Central Pattana has revived negotiations to buy the Udon Charoensri Complex in Udon Thani, expecting to reach an agreement in six months. Nattakit Tangpoonsinthana, executive vice president for marketing at Central Pattana, said yesterday that the shopping-mall developer wants to acquire the shopping centre but he could not predict when the talks would be completed.

Bualuang Securities reiterated in its research that the deal should be sealed within six months.

The brokerage said Central Pattana had renewed the dialogue after the shopping centre's owner failed to strike a bargain with liquor tycoon Charoen Sirivadhanabhakdi.

The complex owner refused to cut a deal with Central Pattana after receiving the acquisition proposal from Charoen.

The Udon Charoensri Complex offers rental space of about 50,000 square metres.

Central Pattana should be allowed to continue operating the complex while renovations are carried out over the next 18 months at a cost of about Bt1 billion, the securities house said.

However, it should reduce its offer for the property because of the economic slowdown, it said.

If the purchase goes through, Central Pattana would increase its investment budget by not more than Bt2 billion for the acquisition and renovation costs, it said.

The brokerage has not revised its target for Central Pattana's earnings this year, given the uncertainty about the acquisition, but it was concerned that Central Pattana might post a net loss from newly opened shopping malls.

Central Pattana might also face a decline in its gross profit margin at Central Lat Phrao.

[laphanphon]

that explains alot.

if i was the owner, i'd sell as quickly as possible, as things won't be getting better, and they may reconsider the purchase all together. i would.

[tamada]

Central's newest venture in Pattaya (which was aimed at the niche market, Bangkok weekend highso's and the well-heeled tourists) looking like a ghost town, I would imagine they could handily beat down the asking price but be careful of what market demographic they are aiming at in Udon. Maybe they just want to acquire the assets and sit on them for a few years first.