Frequently Asked Questions
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HomeInvestor RelationsInformation RequestFrequently Asked Questions

1) What is CPN Retail Growth Leasehold Property Fund?

CPN Retail Growth Leasehold Property Fund or CPNRF is a Property Fund for Public Offering or Type I Property Fund which raises fund from both domestic and foreign individual and institutional investors and uses the proceeds to invest in real properties located in Thailand. CPNRF will primarily concentrate on investment in shopping malls and/or retail properties and/or office buildings which are owned by CPN and/or any companies controlled by CPN.

2) Who should invest in CPNRF?

Typically, CPNRF is suitable for investors who seek stable and continuous stream of dividend income and potential moderate, long-term capital appreciation. Although the benefit from capital gain may not be comparable to that of equity stocks, the fund's unit price tends to experience relatively low correlation to values of other financial assets. Thus, investing in CPNRF may help diversify investors' investment portfolios.

3) Which properties does CPNRF invest in?

At present, CPNRF has investments in:
  • Subleasehold right on land and leasehold right on a certain part of building and utility system of Central Plaza Rama 2 project; and
  • Leasehold right on land and a certain part of building as well as ownership in utility system of Central Plaza Ratchada-Rama 3 project.
  • Subleasehold right o land and leasehold right on a certain part of building and utility system of Central Pinklao Plaza and Pinklao Office Tower A&B
  • Leasehold right on land and a certain part of building and utilitysystem of Central Plaza Chiangmai Airport

For further details please refer to the "Portfolio" section (www.cpnrf.com/site-portfolio/overview.php?language=EN).

4) How does CPNRF benefit from investing in the properties and what is the property management policy?

CPNRF seeks to benefit from the properties mainly by leasing out space and providing related services. To deliver stable distributions to unitholders and achieve long-term growth in distributions and the net asset value per unit, CPNRF implements property management strategy includes asset enhancement strategy, organic growth strategy and acquisition growth strategy.

For further details please refer to the "Fund Strategy" section (www.cpnrf.com/site-about/strategy.php?language=EN).

5) What insurance policy does CPNRF hold?

CPNRF has acquired several kinds of insurance policies, in accordance with the natures of business operation of shopping malls and management of property fund in Thailand, and is the co-beneficiary with the building owner for insurance coverage against:
  • Industrial all risk
  • Business interruption
  • Machinery breakdown
  • Public liability
  • Terrorism

6) How much stake of CPN in CPNRF?

About 27.80% of CPNRF's units are held by Central Pattana Public Company Limited, who is the owner of Central Plaza Rama II, Central Plaza Ratchada-Rama III Central Plaza Pinklao projects and Central Plaza Chiangmai as well as the property manager of the fund. CPN's holding in CPNRF assures the unitholders in terms of commitment and alignment of interest in the fund including enhancing growth of the fund and putting the best effort in property management to maximize returns.

7) What returns do investors receive for investing in CPNRF?

Investors of CPNRF will receive income from the fund in the form distribution payments. The fund is required to distribute at least 90 percent of its net profit of year to unitholders. Additionally, investors may benefit from capital appreciation in invested assets.

For further details of distribution policy, please refer to the "Distribution History" section (www.cpnrf.com/ir/ir_distribution.html).

8) What are risks of investing in CPNRF?

Investing in CPNRF bears specific risks as follows:

1. Risk Relating to Real Properties

1.1) Risk of domestic economic volatility or other macro factors
1.2) Risk of necessary refurbishment and renovation of the shopping complexes
1.3) Risk from higher competition
1.4) Risk relating to tenants' ability to pay rental
1.5) Risk of loss of anchor tenants
1.6) Risk of change of consumer lifestyle
1.7) Risk of natural disaster, accident and terrorism


2. Risk Arising From Operation of the Fund

2.1) Risk relating to non-compliance with sublease agreement by sub-lessor of land and lease of buildings
2.2) Risk from the fact that the fund does not have the right over the space of Central Department Store at Central Plaza Ratchada-Rama III Shopping Complex
2.3) Risk relating to non-renewal of lease agreement for Central Plaza Ratchada-Rama III
2.4) Risk relating to conflict of interest between the fund and property manager (Central Pattana Public Company Limited) and CPN Group's companies
2.5) Risk from the change in accounting standard
2.6) Risk relating to ability to pay distributions of the Fund
2.7) Risk from the fact that insurance proceeds may not cover actual damages
2.8) Risk from the fact that actual results of operation of the fund may be different from specified estimates
2.9) Risk from possible change in unit value after the offering price
2.10) Risk from the fact that the fund invests in leasehold right on real properties

For further details please refer to the "Risk Factors" section the Prospectus.