State Railway of Thailand (SRT) opening bidding for Bang Sue plot
28 March 2019
The State Railway of Thailand (SRT) plans to open bidding next year for a mixed-use development worth 35-80 billion baht on 120 rai next to SCG’s head office in Bang Sue.
Worawut Mala, the SRT’s acting governor, said the plot has potential for development with office towers and residential projects because of its proximity to Bang Sue Grand Station, just 200 metres away.
“Areas surrounding the grand station will be in demand, as the station will become the largest railway interchange in Southeast Asia by 2021,” he said.
The station will have double-track rail, mass transit lines and high-speed trains, Mr Worawut said on Wednesday at a market sounding forum to explore interest from the private sector.
In a preliminary master plan and feasibility study, property development of the plot, called the Red Building area that accommodates 500 SRT staff, will comprise four zones.
Zone A on 20.4 rai is on the south side and is recommended for development of office towers, with a total construction area of 300,000 square metres and a net lettable area of 150,000 sq m.
Phanom Kanchanathiemthao, managing director of property consultant Knight Frank Chartered Thailand, the manager of the master plan study, said Zone A will require an investment of 10 billion baht to construct, excluding land cost.
The rental rate, estimated from current office rates, will be about 700 baht per sq m per month.
Zone B on 55.8 rai is next to Zone A, and in the middle of the plot will be a residential area. The study suggests developing high-rise condo buildings with a total of 6,000 units.
As the plot will be leased from the SRT for 30 years, Knight Frank suggested selling prices of 65,000-70,000 baht per sq m for a 30-year leasehold contract and units sized from 30 sq m.
Zones A and B will be developments that investors can do business at or make revenue from.
The investor will be required to develop two projects for the SRT that will be in the other two zones.
With an investment of 4 billion baht to construct, Zone S on 15.6 rai will be the SRT’s new head office with a total construction area of 113,000 sq m and a lettable area of 70,000 sq m. The zone will be required to meet the LEED gold standard for energy conservation.
Zone C, with 28.2 rai located on the north, will be developed for 2,500-2,700 residential units for SRT staff.
The investor will be required to develop 500-700 units for SRT staff who live on the Nikhom KM11 plot. The remaining 2,000 units will be developed by the winning bidders. Bidding envelopes will be sold on April 9.
Mr Worawut said the total investment will be about 35 billion baht but will rise to 80 billion baht if a city plan regulation for Zone B changes to maximise land use.
“We will submit the master plan to the Department of Public Works and Town & Country Planning to ask for changes in a regulation that will increase the construction area of commercial spaces to more than 10,000 sq m on Zone B to build office spaces,” he said.