These are tough times for CAT Telecom and it is looking at property development to help it bring in more monthly income. The telecommunications outfit has vacant land, which it hopes to develop into usable properties via a joint venture agreement under a revenue-sharing contract, local media reported.
The first project the state-owned company is considering is a commercial building project at its Bang Rak district office. CAT’s 30-story office building is situated in a central business area connected to the Chao Phraya River. There is 12 rai of total land at the site and has a waterside dock that can accommodate tour boats.
“A concise summary of the business plan details is expected to be settled by year-end,” CAT president Col Sanpachai Huvanandana told the Bangkok Post. “Construction work for the first project is expected by mid-2017.”
The first five floors in the Bang Rak building are currently unoccupied and Sanpachai told the newspaper that CAT will likely lease this space out. Meanwhile the vacant land around the office building could be used to develop commercial real estate project.
The waterside area has potential to be developed as docks and piers to serve tourist boats along the river as more water passengers frequent the area once the Iconsiam shopping and residential project, which is across the river from the CAT Tower, opens.
Not much is expected from the first property development project at CAT Tower as the organisation looks to establish new, sustainable revenue streams in a hurry. While the project will not be a flagship project, it will help the telecommunications company establish itself and work towards future projects.
Another state-owned telecom, TOT, is also on the verge of developing a number of commercial real estate projects, local media noted. TOT president Monchai Noosong revealed that TOT has developed 10 such projects already and plans to use its land banks to build more.
