CPB and more shopping

24 08 2017

A major reshaping of Bangkok’s Lumpini area is planned. The Crown Property Bureau is about to make another fortune. Yukako Ono reports on this at the Nikkei Asian Review.

The CPB has made several prime pieces of real estate available for large major urban redevelopment projects.

The biggest of these is with the TCC Group, “the family-owned conglomerate known for brewery subsidiary Thai Beverage,” owned by Sino-Thai tycoon and heavy investor in royal futures, Charoen Sirivadhanabhakdi and his family.

The CPB is leasing land to TCC for up to six decades for its One Bangkok project, “the nation’s largest-ever private redevelopment project, valued at 120 billion baht ($3.6 billion).” Ono says this “vast mixed-use complex will cover 167,000 sq. meters along Witthayu Road, an area home to Japanese, U.S. and British embassies as well as luxury hotels. That prime location drew redevelopment proposals from 21 bidders.” It will include “[f]ive office buildings, five hotels, three condominiums and a shopping mall will take over the location, which used to field a Thai boxing stadium and a night market.”

Part of this land is an area that was an area that was taken from the royals after 1932 but returned to them at an undisclosed time.

Up the road, “hotel operator Dusit International has joined hands with Central Pattana, a property development unit of retail giant Central Group, to close the … Dusit Thani … hotel and replace it with a 36.7 billion-baht mixed-use project that is to include a new Dusit hotel and shopping mall. In extending its property bureau [CPB] lease for the land, Dusit was able to gain an additional 8,000 sq. meters of real estate.”

The property bureau [CPB] itself is participating in the redevelopment boom through fully owned subsidiary Siam Sindhorn. Its first project, an 89,600-sq.-meter hybrid facility, is set for full completion in 2019.

Siam Sindhorn opened a condo at the site earlier this year, which the company says contains interior furnishings and utilities from across the globe. A 30-year lease commands an average of 240,000 baht per square meter, about twice the average going rate for Bangkok’s city center. Siam Sindhorn has begun marketing the development to investors in China, Japan and Western nations.

More upscale shopping, more luxury condos, more luxury hotels. Remember the CPB propaganda about helping small shophouse owners?


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