Sep. 26--Central Pattana Plc (CPN) has increased its 2009 revenue growth target to 30 percent, up to 12.8 billion baht, due to improving economic sentiment and more revenues from new projects.

Earlier, the country's largest retail developer projected its revenues would rise by 25 percent this year from 9.84 billion baht last year.

Chief financial officer Naris Cheyklin attributed the higher rise in revenues to the opening of three new shopping centres this year in Chaeng Watthana (Bangkok), Chon Buri and Pattaya. Same-store sales are also expected to grow by 6-7 percent this year.

"Retail market prospects should continue to improve in the remaining months onward on the condition that politics remain stable. But it's not clear yet whether purchasing power has already increased. We need to see third-quarter sales," he said.

He declined to discuss the performance of CPN in the third quarter.

Despite the weak economy, Mr Naris said CPN was still able to increase rental fees for its Central Plaza Rama II and Rama III malls by 4.8 percent in the second quarter. This reflected confidence among tenants regardless of the downturn.

He expects the number of shoppers to return to normal around year-end, thanks to improved signs in the economy.

CPN yesterday appointed Siam Commercial Bank Asset Management (SCBAM) as its underwriter to raise another 5.68 billion baht for its CPN Retail Growth Fund (CPNRF), bringing the fund size to 17 billion baht.

CPN will raise funds from the sale of Central Pin Klao, one of its best performers, to expand its business. Half of the offering will be allocated to existing unitholders and the rest for public and private placement. The unit price should be fixed at the end of this month. Subscriptions will be from Oct 16-27.

The 10.91-billion-baht CPNRF is currently the largest property fund in Thailand.

Siam Commercial Bank also agreed to a 1-billion-baht loan to CPNRF, accounting for not more than 10 percent of total net asset value. It is the first property fund to acquire a bank loan since the approval by the Securities and Exchange Commission.

Mr Naris said the occupancy rate of Central Pin Klao was 98 percent with rental rates growing by 7.2 percent between 2006 and the second quarter of this year. Central Rama II and Rama III are currently assets under CPNRF.

With a plan to bring one high-performing mall into CPNRF every year, Central Pattana expects to transfer its department store in Chiang Mai to CPNRF next year. The project value was estimated earlier at 4 billion baht, but Mr Naris said the figure needed to be assessed again.

CPN has 15 shopping centres in its portfolio. It earlier set a target of adding eight more projects in the next six years.

Shares of CPN closed yesterday on the Stock Exchange of Thailand at 22.80 baht, down 30 satang, in trade worth 31.5 million baht. CPNRF units were unchanged at 9.15 baht, in trade worth 15.72 million baht.

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