Chong Nonsi lures developers

This seven-rai plot will feature a 70-storey hotel and luxury apartment

This seven-rai plot will feature a 70-storey hotel and luxury apartment

Locations on Narathiwat Ratchanakharin Road and Silom Road near the Chong Nonsi BTS station are becoming hot with three new property projects scheduled for future development with a total value of at least 30 billion baht.

According to property brokers and consultants, the biggest project with the highest value will be a luxury development called Bangkok Mixed-Use.

It will be a joint venture between the Thai property firm Pace Development, the developer of the luxury Saladaeng Residences, and the Israeli investor Industrial Buildings Corporation (IBC), a large real estate developer traded on the Tel Aviv Stock Exchange.

Both planned an official announcement last Wednesday but postponed it due to unfavourable sentiment, though the investment and development plan continues to move forward.

An industry source said the plot was a seven-rai site on Narathiwat Ratchanakharin Road close to the Chong Nonsi BTS station, next door to Golden Land’s The Infinity, a nearly completed luxury residential project.

He said that Sorapoj Techakraisri, Pace Development’s CEO, had dealt with the plot’s landlords for five years. Of the seven rai, the front three rai were owned by Prasong Panichpakdee of property firm Somprasong Group and the four rai at the back belonged to the Catholic Missions.

The land price was not disclosed. But market prices rose to 800,000 baht a square wah after the giant insurer AIA completed a deal with Metrostar Property for a plot on South Sathon Road last year, the source added.

In August last year, IBC reported that the company, controlled by Israeli investor Eliezer Fishman, would invest 71.1 million shekels (595 million baht) to develop a luxury property project in Bangkok.

It signed an agreement with three Thai companies that held the rights to the land plot. IBC would have 50% voting shares and the right to profits in the companies initiating the project.

The project would include two buildings with total built space of 123,000 square metres, one of which would be a 70-storey skyscraper comprising luxury apartments, a Ritz Carlton hotel and commercial space, scheduled to be completed by 2012.

“If the project is completed, it would be the second highest building in Thailand, following Baiyoke Tower,” the source said. “And this location will shine as two luxury hotels are located there - W Hotel on the same plot of The Infinity and Ritz Carlton.”

According to the Department of Business Development, IBC and Pace Development have set up three joint-venture companies. They are Pace Project One with registered capital of 200 million baht in 2007, Pace Project Two and Pace Project Three in 2008 with capital of 200 million and 100 million baht respectively.

The source said IBC and Pace had now revised the plan and had additional options. The project investment is estimated at around 40 billion baht while the value should exceed 50 billion.

Before teaming with Pace Development, IBC had been interested in a project by renowned architect Rangsan Torsuwan, the Sathorn Unique Tower condominium, a suspended 49-storey building on Charoen Krung Road.

It also spent 40-50 million baht as a deposit but the deal could not be completed due to unresolved problems with the building’s creditors, the source added.

The listed developer Major Development Plc (MJD), meanwhile, acquired a 500-square-wah site on Anuman Ratchathon Road, which links Silom and Surawong roads, in the third quarter last year for 361 million baht.

MJD managing director Suriya Poolvoralaks said the company planned to launch a condominium project with 100 to 200 units in the first quarter of this year but needed to postpone it to the second half of the year as the timing was poor.

“The Silom and Surawong area has potential as the location and property prices are good,” he said.

In the second half, MJD also plans to launch a new condominium in the Phaya Thai area but it is postponing the launch of another condominium in Thong Lo to next year.

On Pramuan Road, linking Silom and North Sathon roads near the Hindu Temple, the Phornprapha family is interested in a three-rai plot where an SMC Motors Volvo showroom was once situated.

“This leasehold plot has a two-year contract remaining but the showroom is now empty and removed,” said the source.

The family plans to develop the hip-style Siam@Silom Hotel, following up on the success of its Siam@Siam Hotel near the National Stadium BTS station.

Along Sathon Road, it is very rare to find large plots for new development. Currently, there is only one plot of 10 rai on the corner of South Sathon Road near the Surasak Intersection and Taksin Bridge, on the offer for around 650,000 baht a square wah, said a property broker.

The plot has attracted a lot of interest from investors and developers but most of the deals have failed due to problems with some landlords and concerns about evictions, said the source.

About the author

Kanana Katharangsiporn Kanana Katharangsiporn
Kanana Katharangsiporn is a senior journalist with The Bangkok Post, Thailand's first English language newspaper and specialises in property and real estate areas.
Other posts by Kanana Katharangsiporn ( 36 )

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