From left  Pakorn Partanapat, chief operating officer of CPN; Wallaya Chirathivat, chief development officer of CPN; and Nattakit Tangpoonsinthana, CPN's executive vice-president for marketing.

Central Pattana Plc (CPN), the SET-listed property and retail developer under Central Group, is constructing its first luxury outlet in Bangkok, worth 5 billion baht.

Wallaya Chirathivat, CPN's chief development officer, on Tuesday announced that the company is developing a new business format, branded "Central Village -- Bangkok Outlet Experience" on a 100-rai plot 10 minutes from Suvarnabhumi airport.

Construction started last week and commercial operations are scheduled to begin in the third quarter next year.

The outlet mall plans to have gross leasable area of 40,000 square metres with some 235 boutique shops of both international and local brands, including electrical appliances, restaurants, travel concierge and a playground in outdoor ambience. A supermarket and international-branded hotel with 200 rooms will also provide services at the luxury outlet.

The company hired The Outlet Company, a world-class global outlet shopping consultant with experience in developing outlet malls in Japan and Taiwan, to advise on the new luxury outlet.

"Central Village is a new retail format by CPN, marking an important step forward to create a genuine luxury outlet shopping experience that is the first of its kind in Thailand," Ms Wallaya said. "It is also one of CPN's key strategic moves and will be a new brand in CPN's portfolio, underlining CPN's position as a global player in Asia."

This goal is in line with the government's policy to make Thailand the top tourist and shopping destination in Southeast Asia.

"Central Village aims to become a must-visit shopping destination, similar to Gotemba in Japan, Bicester Village in England, McArthur Glen in Italy and Gloria Outlet in Taiwan," Ms Wallaya said.

Pakorn Partanapat, CPN's chief operating officer, said he sees huge potential in Thailand, where people have high purchasing power and like to travel abroad and buy world-famous brands, along with the growing trend of people in Asia buying global brands.

He believes that Central Village will create a genuine luxury outlet shopping experience because of the variety of luxury brands and product categories, from luxury fashion, electronics and kitchenware to toys and home decoration items.

Moreover, prices will be offered at a 35-70% discount from retail prices every day, with customer-centric service and facilities.

Mr Pakorn said about 65% of the main target group for the new luxury outlet is Thai residents and expatriates and 35% is tourists.

"There were 35 million foreign tourists visiting Thailand in 2017, and the figures are expected to rise to 37 million people this year," he said. "Chinese tourists make up the majority of them as they have taken to travelling in recent years and also spend a lot while travelling, along with tourists from Asean."

In addition to this luxury outlet, the company plans to develop two or three more in the future.

CPN said 2017 revenue increased by 18% to 34.59 billion baht, with net profit rising by 47% to 13.56 billion baht. The company expects double-digit revenue growth this year.

CPN shares closed yesterday on the Stock Exchange of Thailand at 81.50 baht, up 1.75 baht, in trade worth 912 million baht.