Rama IV Road to become new business district

Lack of available office space on Sathorn Road is forcing property companies to expand their investment on Rama IV Road, which links Sathorn Road and Wireless Road.

Rama IV Road is set to become the new destination for office complexes as a number of property companies plan to invest up to Bt100 billion until 2010 developing the area, a survey conducted last week by The Nation showed.

The first project, developed by  Central Pattana, will be a multi-purpose complex that comprises a luxury hotel, an office building, serviced apartments and retail outlets on 127 rai of land. This complex will be constructed on the site of what is now the Suan Lum Night Bazaar.

Central Pattana chief executive Kobchai Chirathivat said the company would start construction of the complex by the end of the year under a 30-year contract with the Crown Property Bureau.

Kobchai said the bureau believed that the businesses currently on the site would move by the end of the year and the land could then be handed over to Central Pattana. This project is part of an investment budget of Bt18 billion for 2008-2010, he said.

Meanwhile, the Port Authority of Thailand (PAT) plans to develop 223 rai of land at the Bangkok Port in Klong Toei district on Rama IV Road.

The PAT expects to complete its master plan by the end of the year and will develop the land, worth several billion baht, for mixed use next year.

PAT's project will comprise four zones. The first zone, to be built on 17 rai, will be located close to its head office and will become the Maritime Business Office.  The second zone, planned on 54 rai opposite the Customs Department, will become the logistics and distribution centre.

The third zone, to be built on 137 rai, will become a community and shopping centre. The fourth zone, currently a warehouse built on 15 rai, will become an office building.

PAT will open bidding for 30-year contracts for property developers who are ready to begin construction in the first half of next year, a PAT source said.

Golden Land Property has signed a long-lease contract until 2069 with the Crown Property Bureau to develop 9 rai of land at Soi Pai-Sing-To, located opposite the Klong Toei market, into an office building and a luxury hotel.

This project will cover an area of 100,000 square metres and will be built within a budget of Bt5 billion.

Agency for Real Estate Affairs managing director Wasan Kongchan said Rama IV Road was expected to become the new business district, which is evident from the increasing investment in the area.

As a result, land prices on Rama IV Road rose from Bt300,000 per square wah in 2006 to between Bt400,000 and Bt500,000 per square wah this year.

CB Richard Ellis Thailand's managing director Aliwassa Pathna-dabutr said Rama IV Road was likely to become a preferred location for offices because office complexes on Silom Road and Sathorn Road have reached full occupancy.