City to get new business centre

A bird’s eye view of the Phloenchit-Wireless Road area which is set to become the new business district in Bangkok.

The Phloenchit-Wireless intersection is set to become a new landmark for Bangkok, as three property developers, including the Central Group, Tan Passakornnatee and Charoen Siriwattanapakdi, get set to develop projects worth about Bt20billion at the location.

The Central Group helped the Phloenchit-Wireless Road area gain popularity in March 2006 when it won a Bt3.8-billion bid for a 10-rai plot, where the United Kingdom embassy had been located. The group plans to develop the plot as a huge complex consisting of office buildings, departmental stores, a hotel and an entertainment centre.

 This deal has caused the land price in the area to escalate greatly, so much so that it has become the base price for plots in the downtown area.

Tan Passakornnatee is planning to buy a 1-rai plot in Phloenchit area from Sutham Malila, former president of TOT. The land, which is currently occupied by a Caltex petrol station, is located next to a 7.5-rai plot belonging to Phloenchit Arcade, in which Tan is a major shareholder.

Tan declined to disclose the land price and denied a rumour that he was a nominee for the actual owners, including the well-known tycoon, Charoen Siriwattanapakdi.

He said the new land would add value to his land as it would increase the area and widen the entrance of the plot, which he plans to develop into a landmark. The company plans to develop the land, located next to Phloenchit sky-train station, into a five-star hotel and high-end condominium project. The company expects to spend Bt56 billion on this project.

"I am ready to make a move to invest as the negotiation process with the partners is nearly over. Whether I have a new partner or not, this plot is beautiful enough to create great value," he said.

Tan made his first move in the industry by buying a 38-per-cent stake in Phloenchit Arcade, becoming the second-largest shareholder after the Assanuwong family, which holds 40 per cent of the company's shares.

The Phloenchit-Wireless Road area became even more popular

when billionaire Charoen Siriwattanapakdi's son-in-law, Soammaphat Traisorat, announced his intention to develop it as a destination of choice for foreign investors - for commercial and residential properties.

TCC Luxury Hotel and Resort, a subsidiary of TCC Land, has rented a hotel worth Bt1.36 billion for 30 years from Lertratakarn with the intention of developing it as a five-star hotel in the Phloenchit-Wireless Road area.

TCC Land deputy chief executive Soammaphat Traisorat said the company would spend an additional Bt3 billion to develop the hotel.

He also expressed confidence in the potential of the location.

   At a glance

n The Central Group, Tan Passakornnatee and Charoen Siriwattanapakdi will develop projects worth Bt20 billion at Phloenchit-Wireless Road.

n Central Group is planning a complex with office buildings, department  stores, a hotel and an entertainment centre .