Recently, there have been news reports regarding the investment of CP Extra Public Company Limited (CPAXT), with some information circulating on social media potentially leading to misunderstandings among investors. In response, CPAXT has clarified its position to alleviate investor concerns, emphasizing its commitment to the best interests of shareholders and the growth of the company. The details are as follows:

CPAXT is investing in the project Lotus's Mall Bangna (the Happitat) to establish a large shopping center and retail space covering over 30 rai. The main components of the area and revenue will come from managing a shopping center of 48,000 square meters, along with a new format Lotus Hypermarket, building on CPAXT's current business model. CPAXT specializes in wholesale, retail, and property management, and currently leads the Asian wholesale and retail market with over 2.7 million square meters of sales area and manages over 1.5 million square meters of retail space (including management in AXTRART). The company is advancing its strategy to create sustainable growth through branch expansion, enhancing asset potential, and seeking new investment opportunities to increase returns for shareholders. CPAXT is continuously driving the development of shopping centers and retail spaces.

Recently, CPAXT launched Lotus North Ratchaphruek, a flagship prototype for a smart community lifestyle center, covering over 47,000 square meters. The company is also expanding rental space in several branches, such as Lotus Udon Thani, Lotus Saraburi, and Makro Sathorn, and plans to develop rental spaces in 16 more potential locations in the future. It is expected that by 2029, the company will be able to expand its permanent rental area (NLA) by over 200,000 square meters, significantly contributing to the net profit from managing shopping center spaces.

CPAXT has experienced personnel with knowledge and capabilities, and this is not a new venture for the company but an expansion of opportunities in areas where it excels, particularly in strategic locations. The potential area of Bangna-Trad presents an opportunity due to the expansion of transportation, the emergence of high-priced residential developments, and the growth of the airport, making investments in strategic locations a driver for CPAXT's business growth. 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 have space where the main components of the area and revenue will come from the new format Lotus Hypermarket and the rental space in the shopping center. Additionally, the project includes Grade A office buildings and green spaces reflecting environmental sustainability, allowing CPAXT to leverage its expertise in wholesale, retail, and property management to expand its business in the strategic Bangna area, enhancing its potential and creating sustainable business growth.

Project Highlights

  • Strategic location with three buildings along the road in Bangna, surrounded by urban greenery, situated in a comprehensive economic and residential center, one of the strategic points in the four corners of Bangkok and its outskirts.
  • Utilizing the company's core business, which is opening new format Lotus Hypermarkets, while managing space for shops, services, and areas for community activities, with a total permanent rental area (NLA) of nearly 48,000 square meters, accounting for 3.2% of the current NLA.
  • Main customer base: residents in the Bangna area within a 7 km radius, totaling 1.2 million people, office users, and tourists, with an expected visitor count of 36,000 people per day.
  • Quick returns, as over 80% of the invested buildings have been constructed and can partially open within 12 months, faster than developing new areas, which is rare in strategic locations in Bangna and typically takes at least 3-5 years to operationalize.
  • Investment through indirect ownership in the Lotus's Mall Bangna (the Happitat) project provides more stability for the company than being a tenant.
  • Sustainability-focused design with green spaces from nearby forests.

Investment Through Careful Valuation

The company's board has carefully considered the appropriateness of the investment by valuing the assets in this project through appraisers approved by the Securities and Exchange Commission (SEC), using the average price from three appraisers.

Investment Value

The company has received approval from the board for an investment budget of approximately 15 billion baht, with the return on investment aligned with the company's policy for managing large stores.

Investment Through a Holding Company Structure

The establishment of Extra Growth Plus Company Limited (AGP) aligns with the company's objectives to drive shopping center management. The holding company structure enhances flexibility in managing the company's investment funds and facilitates quick operations, allowing for transactions with partners and clearer performance measurement.

Commitment to Governance and Transparency

The company reaffirms its commitment to adhering to governance principles that consider the best interests of the company and all stakeholders. In considering this investment, it has operated under the relevant guidelines of the SEC and the Stock Exchange of Thailand. The board has carefully reviewed detailed information about the investment project, investment value, benefits from the investment, asset valuation by SEC-approved appraisers, and recommendations from reputable legal advisors, focusing on the best interests of the company. The company is ready to answer questions and concerns regarding this investment and welcomes suggestions from investors to improve communication and information disclosure.

The company believes that this investment is worthwhile and aligns with its original business plan, leading to growth, and it has personnel with expertise in managing and operating the Lotus's Mall Bangna (the Happitat) project.

The company thanks shareholders and investors for their confidence in CPAXT's vision and business plans. We are committed to creating sustainable growth while enhancing value for all shareholders.

Yesterday, CP Extra's management communicated with investors, reinforcing business operation standards and investment criteria. This investment is part of the normal business operations (business as usual) based on the organization's expertise, in line with the company's strategies and policies for business continuity.