CP Axtra clarifies on its investment in Lotus’s Mall Bangna

 

CP Axtra Pcl on Wednesday issued a statement addressing concerns raised by investors regarding its recent investment in the Lotus's Mall Bangna (the Happitat) project.

 

The statement addressed concerns among investors and doubts that the move could potentially violate good governance policies.

 

The company emphasised its commitment to transparency and good governance, and assured shareholders that the investment aligns with its strategic goals and was in the best interests of the company.

 

 

The statement clarified that the investment aims to expand CP Axtra's retail footprint and capitalise on the growing demand for retail space in the Bang Na area. The project is expected to generate significant revenue through the operation of a new Lotus Hypermarket and the leasing of retail space within the shopping centre.

 

 

 

According to CP Axtra, key highlights of the project include:

• Strategic location: The project is situated in a prime location in the Bang Na area, a key economic hub in Bangkok.
• Diverse revenue streams: The project will generate revenue from multiple sources, including:
• Retail sales: The new Lotus Hypermarket is expected to attract a large customer base.
• Rental income: The project boasts over 48,000 square metres of leasable retail space.
• Potential future developments: The project encompasses over 30 rai (approximately 48,000 square metres) of land, offering opportunities for future expansion.
• Sustainable design: The project incorporates sustainable design principles, including green spaces and energy-efficient features.
• Experienced management: CP Axtra's experienced management team will oversee the project, leveraging their expertise in retail and property management.

 

 

The company assured investors that the investment decision was made after careful consideration and due diligence, including a thorough valuation of the assets involved.

 

 

 

 

 

The investment has an approved limit of approximately 15 billion baht. The return on investment is expected to be in line with the company's policy for managing large stores.

 

 

 

The investment is expected to deliver strong returns and contribute to the long-term growth of CP Axtra.

 

 

"We believe this investment is a worthwhile opportunity that aligns perfectly with our existing business plan, which has consistently driven growth. We are confident that the Lotus's Mall Bangna (the Happitat) project will be a valuable asset and contribute significantly to CP Axtra's long-term success," the statement said. 

 

 

"CPAXT has decided to invest in Lotus’s Mall Bangna (the Happitat) because the project is located in a strategic area in Bangna, allowing CPAXT to develop a space where the main components and revenue will come from a new format Lotus Hypermarket and the management of retail space in the shopping centre. Additionally, the project includes Grade A office buildings and green areas that reflect environmental sustainability. This investment enables CPAXT to leverage its expertise in wholesale and retail business, as well as in property management, to expand its operations in the strategic Bangna area, enhancing its capabilities and fostering sustainable business growth," the statement said.