The State Railway of Thailand (SRT) is planning to offer its land at Bangkok’s Khlong San market up for long-term commercial use under rental contract next year to generate additional income, said SRT deputy 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 the tenants to raise the rental fee to suit the 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 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 five-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 next year.
Somyut said: “SRT estimated 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.”
THE NATION (THAILAND)/ASIA NEWS NETWORK