Thai rail operator’s plot of land in Bangkok to be put up for auction

THE State Railway of Thailand (SRT) is planning to of fer its land at Bangkok’s Khlong San market up for long-term commercial use under renta l contract next year to generate additiona l income, said SRT deput y director for train operations Somyut Reun-Ngam.

He said: “The land covers approximately five rai [0.8ha] 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.

“SRT had negotiated with t he tenants to ra ise t he renta l fee to suit t he current situation, from 1.6 million baht per month to 15 million baht [$ 51,000 to $480,000], but both tenants expressed no interest in extending t he contract.”

Somyut added t hat t he land has high potentia l for commercial use since it is located by Chao Phraya River and next to severa l five-star hotels and Iconsiam highend 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 t he yearend and the land shall be put up for bidding after t he current contract expires in April next year.

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

“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.”