SRT's Khlong San market land to be offered for commercial development

[webfact]

SRT's Khlong San market land to be offered for commercial development

By THE NATION

 

 

The State Railway of Thailand (SRT) is planning to offer its land at Khlong San market up for long-term commercial use under rental contract next year to generate additional income, said Somyut Reun-Ngam, SRT deputy director for train operations.

 

“The land covers approximately 5 rai [0.8 hectare] from Khlong San market to Khlong San pier, and is currently under rental contracts with two tenants, namely Consultant, Planning, and Development Ltd. The contracts will expire by April 2021, and the operator of Khlong San pier, which will expire by December 2021,” he said. “SRT had negotiated with the tenants to raise the rental fee to suit the current situation, from Bt1.6 million per month to Bt15 million, but both tenants expressed no interest in extending the contract.”

 

Somyut added that the land has high potential for commercial use since it is located by Chao Phraya River and next to several 5-star hotels and Iconsiam high-end shopping complex. “The land is also adjacent to the Charoen Nakhon station of Gold Line monorail, which provides convenient transport option for potential customers,” he added.

 

SRT is conducting a study on the development format, investment budget and return on investment from the land at Khlong San market. The study is expected to be complete before the year-end and the land shall be put up for bidding after the current contract expires in April 2021.

 

“SRT estimated that the development project will be in mixed-use form comprising condominium, shopping mall and office complex,” said Somyut.

 

“The bidding will follow the SRT’s land rental regulations for private developers and does not have to comply with the Public-Private Partnership Act because it does not involve the development of areas for public service.”

 

Source: https://www.nationthailand.com/news/30393385

 

-- © Copyright The Nation Thailand 2020-08-24

 

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[RichardColeman]

1 hour ago, webfact said:

“SRT had negotiated with the tenants to raise the rental fee to suit the current situation, from Bt1.6 million per month to Bt15 million, but both tenants expressed no interest in extending the contract.”

Huh ? They wanted to raise the rent near 1000% in negotiations to suit current situation ? How thoughtful. Course there was no flaming interest by tenants. 

Edited August 23, 2020 by RichardColeman

[NVass]

And so another piece of Bangkok's rich history disappears under the bulldozer for profit!

[ChipButty]

Will be interesting to see who does buy it

[tonray]

3 minutes ago, ChipButty said:

Will be interesting to see who does buy it

My bet it turns into a PTT station with an Amazon cafe, a bunch or mediocre restaurants selling Khanom Jeen and a Jiffy Mart...????

[hotchilli]

5 hours ago, RichardColeman said:

Huh ? They wanted to raise the rent near 1000% in negotiations to suit current situation ? How thoughtful. Course there was no flaming interest by tenants. 

They know how to drive a hard bargain... 

[Bender Rodriguez]

8 hours ago, webfact said:

to raise the rental fee to suit the current situation, from Bt1.6 million per month to Bt15 million, but both tenants expressed no interest in extending the contract.”

wow, they either got it super cheap years ago or ...

[MRToMRT]

Another bit of the old Thailand gone to the ubiquitous concrete and glass jungle.

[impulse]

17 hours ago, tonray said:

My bet it turns into a PTT station with an Amazon cafe, a bunch or mediocre restaurants selling Khanom Jeen and a Jiffy Mart...

 

Not at $500K USD a month for rent.

 

Probably ties into the new BTS Gold Line, which caused the value of the land to skyrocket...  Which is how it's supposed to work.  Even if the new BTS line isn't self funding immediately, the increase in the rent on the adjacent land more than makes up for it.

 

 

Edited August 24, 2020 by impulse