Bourse in rent tangle
The Stock Exchange of Thailand (SET) is negotiating with the Crown Property Bureau - the landowner and lessor of the site where its HQ is located - over Bt344 million in unpaid rent, the SET said yesterday.
Executive vice president Nongram Wongwanich said the SET had a 30-year ground lease with the CPB. The lease expires in 2028. Under the terms, Tanayong, the developer, was given the right to lease the land in return for agreeing to be responsible for all lease payments on behalf of the SET to the lessor. In the event of a default on rent payments, the CPB is required to pursue collection directly from Tanayong until a final court judgement has been obtained, before the lessor is permitted to claim rent payments from the SET. However, financially strapped Tanayong has been unable to pay ground rent since 1994 amounting to Bt283.63 million, forcing the CPB to seek redress in the Civil Court. In 2004, the Civil Court ordered Tanayong to pay back-rent from 1994-2001 amounting to Bt132.84 million plus interest to the lessor. In 2005, the company appealed, and as of last December 31, the case was still with the Appeals Court. Last year, the SET and Tanayong were sued by the CPB for unpaid rent stretching from 1994-2005 plus interest totalling Bt344 million. The SET was also sued by the CPB to remove its assets on an area beyond the leased site and pay the CPB compensation of Bt220 million.
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