Thai officials are pinning high-revenue hopes on state-owned land in a well-connected location near downtown.
By developing nearly 200 acres of land owned by the state rail authority, the Finance Ministry hopes to create a commercial zone to rival that of Silom Road.
“This is driven by its geological advantages,” said Director-General Naris Chaiyasoot of the Treasury Department. “Silom is highly crowded, with lots of commercial buildings and no room to expand, so its prices may have peaked. Whereas Makkasan, a centre for mass transit networks throughout Bangkok, will expand in the future.”
The BTS Skytrain, MRT subway and Airport Rail Link lines all pass through the area, which could make Makkasan particularly attractive to developers.
Rail officials decided to make lease the land for 90-to-100 years to settle debts with Finance totalling about THB80 billion.
About 100 acres of land, also own by the State Railway of Thailand, are being considered for development in the Chong Nonsi area.
Thailand’s rail authority consistently has poor financials. Despite sitting on about THB157 billion in assets, it holds a net debt of THB101 billion, net equity of 56.2 billion and its oeprtaional debt is THB75.8 billion. That’s not to mention a -112 percent net profit margin, Bangkok Post reported.
Photo: Wikimedia user Lerdsuwa