Central Group Unveils 83 Billion Baht Luxury Mega Project in Bangkok

Central Group and Central Pattana Public Company Limited announced a plan to form a joint venture with a 51:49 shareholding structure to invest in the current Central Embassy shopping center project and a new future extension, Central Embassy 2, on Wireless Road and Soi Somkid in Bangkok. Located on a prime freehold site in the city center, the plan aims to link the two projects into one fully integrated super-luxury mixed-use mega landmark of world-class standard. The total project investment exceeds 83,000 million baht and includes retail space, office buildings, and residences to strengthen the real estate business and expand the luxury portfolio for long-term investment returns. Details are as follows:

1. Investment structure under the joint venture to develop a world-class mega mixed-use project. The joint venture will acquire all shares from the Hong Kong Land group companies in the Central Embassy 2 project, increasing the shareholding proportion in the development from 51% to 100%. The joint venture will also invest in the 30-year long-term leasehold rights of the current Central Embassy project (excluding the Park Hyatt Bangkok hotel portion).

2. Strong capital structure combining real estate expertise and global luxury portfolio. This investment is part of Central Group's strategy to expand its luxury business portfolio, which manages luxury retail in over 18 countries and 140 cities across Europe and the world, and is a global strategic partner of world-leading luxury brands with massive annual sales. Combined with Central Pattana's experience developing and managing luxury malls such as Central Phuket, the two will jointly manage and develop a world-class project, elevating Thailand's mixed-use sector to a new level.

3. Investment in quality assets at appropriate value and terms, generating good returns. Central Embassy is a luxury shopping center that has operated for over 12 years with profitable performance and positive operating cash flow. It maintains over 90% occupancy, revenue growth exceeding 10% per year over the past five years, and luxury brands accounting for more than 50% of rental income, reflecting asset quality and long-term return potential. The joint venture considered the investment based on the high-value freehold location in central Bangkok, the agreed-upon share purchase price from the Hong Kong Land group, and the reflection of project shareholders' cost basis. The investment has passed relevant review and approval processes, adhering to good governance principles and the appropriateness of investment value, returns, and benefits to the joint venture and shareholders. Additional project development details will be disclosed in the future.

With the vision of creating a world-class mega mixed-use Central Embassy project linking two buildings into one, the total gross building area will reach 600,000 square meters. The current Central Embassy has 150,000 square meters, and Central Embassy 2 will have 450,000 square meters, becoming the only fully integrated super-luxury mixed-use mega landmark of world-class standard that is entirely freehold.