AT LONG LAST
The Treasury Department expects development of the delayed Customs House land will go before the cabinet next month.
‘‘ A lease contract for the project worth 3 billion baht has been signed with SET-listed U City Plc. AMNUAY PREEMONWONG Director-general, Treasury Department
Land development of Roi Chak Sam, delayed a decade and consisting of turning the 100-year-old Customs House on five rai along the Chao Phraya River into a luxury hotel, is expected to go before the cabinet by February. A lease contract for the project worth 3 billion baht has been signed with SETlisted U City Plc, renamed from Natural Park Plc (N-Park), said Amnuay Preemonwong, director-general of the Treasury Department. N-Park was renamed U City after completing an amalgamation with BTS Assets Co and Kamkung Properties Co from BTS Group Holdings, and the consortium won a 30-year concession contract from the Treasury Department in 2005 to develop and manage the boutique hotel, with no more than 33 rooms on the plot on Charoen Krung Road. The project is just one of the department’s three lingering projects. The others are development of the Mor Chit area for commercial purposes, and expansion of Queen Sirikit National Convention Center. The department will carry out details for the 63-rai Mor Chit project before seeking an environment impact assessment approval, he said. In related news, the Treasury Department aims for a 11% increase in its rental revenue this fiscal year, driven largely by a hike in rent for land used for commercial purposes, said Mr Amnuay. The department estimated its rental revenue will be 10 billion baht this fiscal year, up from 9 billion the last fiscal year. The commercial land rent increase is expected to generate an additional 600 million, he said. The fiscal year starts runs from Oct 1 to Sept 30. The department changed its commercial rent calculation, effective from the beginning of the calendar year. The new rent is based on 3-4% return on assets from the market price if the land was to be sold. The new rental rate does not apply to those who rent state land for agricultural and residential use, to prevent lowincome earners from suffering. The department manages 12.5 million rai of state land and 400,000 rai is rented, of which 80% is used for farming and residential purposes. The remaining 20% is for commercial use.