Central Group, Central Pattana announce THB 83 billion luxury mega-project in Bangkok

Bangkok-based Central Group and Central Pattana have jointly announced a THB 83 billion investment plan to transform Central Embassy and its planned expansion into a luxurious mixed-use development in central Bangkok. The project will merge Central Embassy, a highly-occupied shopping center with an annual revenue growth of over 10% over the past five years, with Central Embassy 2 situated along Wireless Road and Soi Somkid.

A joint venture with a 51:49 ownership ratio will oversee the investment, acquiring all shares of a Hongkong Land subsidiary in Central Embassy 2, which currently holds a 51% stake, and investing in a 30-year leasehold interest in the existing shopping center. The combined development will span approximately 600,000 square meters, with 150,000 square meters at Central Embassy and 450,000 square meters at Central Embassy 2.

Central Group, a luxury retail firm with operations in more than 18 countries and 140 cities, primarily in Europe and international markets, will benefit from this expansion. Central Embassy boasts an occupancy rate of more than 90%, with luxury brands accounting for more than half of its rental income. The investment has undergone necessary review and approval processes, with plans to announce further details, including design and construction timelines, at a later date.