The State Railway of Thailand (SRT) currently has 39,000 rai of unused land and is finally set to do something with it as it looks to achieve rental income of THB10 billion in the next 5 years. The company will create a wholly owned subsidiary to handle this unused land as well as other non-core assets, reports local media.
The subsidiary will likely have THB300 million in registered capital and be monitored by the SRT to ensure it is compiling with rules and regulations, says Amnuay Preemonwong, SRT Deputy Permanent Secretary for Finance, to the Bangkok Post. The plans are currently being considered by the Ministry of Transports and need to be sent to the State Enterprise Policy Office before it can be approved by the cabinet.
Railway pic via bangsue-rangsitredline.com
The SRT has 3 large land plots in Bang Sue, Makkasan, and the Yannawa district near the Chao Phraya River as well as holdings adjacent to Vibhavadi Rangsit Road and Kamphaeng Phet 2 Road. It is believed these could be developed in a way that will make it possible for the company to reach its THB10 billion rental income target.
Just how the land will be developed remains uncertain as each plot has issues limiting what can be done. The company has not decided what parts of the Makksan land will be developed for commercial purposes. The site contains the SRT’s maintenance centre that will remain there.
The Red Line Train pic via bangsue-rangsitredline.com
The Bang Sue land plot will be used by the government to connect the Red Line train and Airport Rail Link which will cut into how much of it can be developed by the SRT. Meanwhile, the land close to Chao Phraya River has communities near it who will need to be accommodated. The company is looking at ways to address this problem including the construction of high-rise buildings that will provide housing for these communities. It hopes to develop residences, office buildings or department stores at this site.
Receive the latest property news on email from Thailand’s No.1 property website here, or read more project reviews
