Mr. Sompong Rungnirattisai, Chief Executive Officer of CP Axtra Public Company Limited (SET: CPAXT), has addressed market concerns about the investment in The Happitat through the ‘Kaohoon’ program on 19 December. He firmly reiterated the strategic vision for a high-end Lotus’s Mall within the project, aiming to align with the company’s growth trajectory and enhance shareholder value.
CPAXT became the main focus in the market after announcing an investment in Happitat at The Forestias Co., Ltd. last Friday. Investors viewed the move as a bailout for Magnolia Quality Development Corporation Limited (MQDC), the owner of The Forestias, as the whole area was originally developed by MQDC, a company run by the Chearavanont family, same as CPAXT despite being a public company.
CPAXT released several statements through the Stock Exchange of Thailand to reiterate and reaffirm its decision as the investment has been reviewed by experts and SEC. However, it was not enough to sway the market sentiment toward the company.
The interview with ‘Kaohoon’ was the first public appearance that investors have seen from CPAXT in addressing this topic.
Mr. Sompong points out that it is important to understand that the Happitat is not a part of The Forestias as the company has purchased the land and the ongoing projects, located in front of The Forestias.
The investment has been approved by the Board and audit committee as well as the Securities and Exchange Commission. The company is confident that the investment suits its expertise as Happitat will become a large community mall, led by high-end Lotus’s Mall, not a property development business seen in various media outlets.
There are three buildings including a 10-story office building, which could lead to a misunderstanding that CPAXT is venturing into an unfamiliar business. However, the office zone accounted for only a small portion of the complex, dominated by the community mall area.
Mr. Sompong notes that rent fees from the office area accounted for a small portion of the revenue, but the key is to increase traffic to the community mall during weekdays that normally sees a drop in activity.
From a management perspective, he considers the recent investment decision as part of regular business operations in CPAXT. According to him, searching for land for investment is a routine process for the company, making this a standard business practice.
Previously, CPAXT had Lotus’s in the Happitat, but upon recognizing growth opportunities, they presented the project in a meeting to further enhance and revamp it.
“We assure that our investment process adheres to all correct procedures, transparent, and verifiable transactions,” affirmed Mr. Sompong. He detailed the thorough due diligence conducted, hiring asset evaluators, and obtaining approvals from both the executive committee and the board of directors.
“We aim to launch this project in 2026, expecting cash inflows to begin, and anticipate profitability by 2027,” Mr. Sompong projected.
Regarding governance concerns, the company remains unworried, viewing the investment as a routine, transparent, and verifiable operation aligned with corporate strategy. The move primarily benefits the company and its shareholders, ensuring it is not skewed towards any particular interest.
