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

BANGKOK – Central Group and Central Pattana have announced a joint investment plan worth more than THB 83 billion to transform Central Embassy and its planned expansion into a major luxury mixed-use development in the heart of Bangkok.

According to a joint press release, the project will combine the existing Central Embassy shopping centre with Central Embassy 2, located along Wireless Road and Soi Somkid, into a single development featuring luxury retail space, offices and residences.

The two companies will establish a joint venture with a 51:49 ownership structure to oversee the investment.

Under the agreement, the joint venture will acquire all shares held by a Hongkong Land subsidiary in Central Embassy 2, increasing its ownership of the development from 51% to 100%.

It will also invest in a 30-year leasehold interest in the existing Central Embassy shopping centre, excluding the Park Hyatt Bangkok hotel.

The combined development will have a gross building area of approximately 600,000 square metres, comprising 150,000 square metres at the existing Central Embassy and 450,000 square metres at Central Embassy 2.

The companies said the investment would strengthen Central Group’s luxury retail portfolio while drawing on Central Pattana’s experience in developing and managing major shopping destinations.

Central Group operates luxury retail businesses across more than 18 countries and 140 cities, primarily in Europe and other international markets.

According to the companies, Central Embassy has maintained an occupancy rate of more than 90%, with annual revenue growth exceeding 10% over the past five years.

Luxury brands currently account for more than half of the shopping centre’s rental income.

The companies said the investment had undergone the relevant review and approval processes, including assessments of valuation, expected returns and corporate governance.

They described the project as an opportunity to strengthen Bangkok’s position as an international luxury shopping and business destination.

Further details of the development, including its design and construction timeline, will be announced at a later date.