British Embassy - Thailand's most expensive land sale

**William** · 31-03-2006, 09:03 AM

Firms vie for embassy land
LH or Gaysorn may pay up to B1m/sq wah

UMESH PANDEY

Two local-foreign partnerships have reached the final round of bidding for what could prove to be Thailand's most expensive piece of land, according to industry sources.

Land & Houses Plc, and its partner, Government of Singapore Investment Corporation, will be competing with G.S. Property Management, the operator of the Gaysorn luxury mall, and its partner Hong Kong Land. Other heavyweights, including TCC Land, backed by liquor billionaire Charoen Sirivadhanabhakdi, failed to make the cut.

The nine-rai site in front of the British Embassy on Ploenchit Road could fetch as much as one million baht per square wah, say industry executives. That would far outstrip prices paid for prime land on Silom and Sathorn roads, which have been known to fetch between 200,000 and 400,000 baht per square wah.

Two years ago a plot of land on Sathorn Road belonging to the United States Information Services (USIS) fetched 260,000 baht per square wah at an auction.

It was purchased by Singapore's Hotel Properties Limited (HPL) and is being developed into a high-end condominium, The Met.

''Yes, we have bid for the project and I cannot disclose the details as I still want to abide by the confidentiality agreement that we have with the sellers,'' said Charn Srivikorn, chairman of G.S. Property Management.

Adisorn Thananan-narapool, senior executive vice president of LH, declined to reveal the price his company had offered but said the minimum price in the preliminary phase was around 700,000 baht per square wah.

But sources in the industry say the figure is likely rise to one million baht per square wah, putting the value of the land at a staggering 3.6 billion baht.

CB Richard Ellis is acting as the agent for the deal and Alan Mayland, a senior management officer at the British Embassy, is co-ordinating matters on behalf of the embassy.

Both parties declined to give any details about the auction except to say that a decision would be made soon.

LH is bidding under a company called Royal Excellency, which is 60% owned by the Thai developer and 40% by Singapore's GIC, which has various investments with LH in offices and residential buildings.

If it succeeds, LH has said that it plans to invest around 13.5 billion baht in the plot over four years to develop three kinds of property: a serviced apartment building, an office building and a hotel, on 150,000 square metres.

Developers had shown a keen interest in the plot due to its close proximity to the Central Chidlom shopping complex, the Ploenchit BTS Skytrain station and the expressway.

Earlier reports have suggested that the funds would be used by the British government to refurbish other embassies around the globe.

The British government bought the 27-rai plot in 1922 for 110,000, or 7.411 million baht in today's money, in what was then considered to be a remote part of Bangkok.

''There's no better location than this in the heart of the city and most of the buyers are willing to pay a premium for this plot,'' Mr Adisorn said.

''We plan to build a whole complex of things there, an office, serviced apartments and some retail.''

Although the results of the sale are to be announced next month, the winner won't be able to work on the project for at least two years because the embassy needs time to build a new complex and move its operations.

''We [along with HK Land] are taking a long-term view of this plot. We do not expect it to yield good returns in the first few years but in the long run it is going to offer good returns,'' Mr Charn said.

source: http://www.bangkokpost.com/Business/31Mar2006_biz46.php

**Smeg** · 31-03-2006, 09:20 AM

36,000 Baht into 3.6 Billion Baht over 84 years can't be a bad return.....

**Butterfly** · 31-03-2006, 06:25 PM

And the buyers are being fuck in the ass, bareback. This is crazy.

Obviously people never learn. LH is already lost considerable profits for the last 2 years. To engage in such a crazy projects, it defies all good sense. oh well, let's hope they will crash and burn. I sold that stock long ago

**obsidian** · 01-04-2006, 05:15 PM

big money

**Marmite the Dog** · 01-04-2006, 10:25 PM

Originally Posted by obsidian

big money

You're a quick one, aren't you?

**ChiangMai noon** · 01-04-2006, 11:01 PM

He's made it to the 100 now.. maybe he'll start posting something longer than 3 words long and worth opening a reply for.
We live in hope.

**dirtydog** · 02-04-2006, 03:10 AM

got to admit I was thinking of merging his last 10 posts into one post, maybe best just to delete them

**klongmaster** · 02-04-2006, 08:55 AM

Originally Posted by William

one million baht per square wah

one square wah = 4 sq metres or 43 sq feet

so it's certainly a prime piece of land...

anyone know where the embassy are going to build their new one...

Khon Khen maybe

**William** · 28-04-2006, 09:40 AM

Update Bangkok Post:

PROPERTY / UK EMBASSY PLOT

Central wins bid for most valuable land
PITSINEE JITPLEECHEEP & KRISSANA PARNSOONTHORN

Central Retail Corporation (CRC), the country's largest retail chain, has won the bid for the British Embassy land, which has been touted as the most valuable plot in Thailand. An industry source said CRC beat Land & Houses Plc in the final round of bidding with an offer of more than 900,000 baht per square wah, or three billion baht, for the prime nine-rai plot on the corner of Wireless and Phloen Chit roads, while the latter proposed 880,000 baht.

In the first round, LH offered more than CRC at 830,000 baht per square wah with a proposal to build accommodation for embassy staff and compensate for its relocation over the next two years.

Executives at CRC declined to disclose details, saying the embassy would officially announce the outcome.

However, an informed source at the Central Group of Companies said there were plans to turn the plot into a first-class commercial project, with a shopping area, serviced apartments or hotel and an entertainment anchor.

''With the tough retail competition, Central Chidlom needs to expand and if it can do this, it will be able to satisfy growing consumer requirements. Central Chidlom and the new development will become a one-stop shopping destination in Phloen Chit,'' he said.

At present, Central Chidlom has limited space to stage marketing events and a long list of retail tenants who want to open outlets there.

Central Chidlom leases a one-rai plot from the Kamol Sukosol Group for parking space, which would be in jeopardy if the lease cannot be renewed.

The source said Central Chidlom had a variety of customers, and must have various brand names to serve everyone.

The new shopping development on embassy land would include a number of international brand names for fashion apparel to food and leather products.

In another development, Kobchai Chirathivat, the president of Central Pattana Plc, the group's property development arm, confirmed that CentralWorld would open on June 30, on schedule.

The company was confident that CentralWorld would be a success despite the economic slowdown and the impact of soaring oil prices and interest rates.

During the 1997-98 crisis, Mr Kobchai said, consumers still chose to shop at leading retail sites. Sales of CPN dropped only 5% during the 1997 recession.

He added that CentralWorld, which offered a variety of products and services, would remain attractive even if it opened in a weak economic environment.

He said CentralWorld was about 90% complete and 92% of the space was already booked by retailers. Overall construction was set to be be completed by the end of this year and in the next two years for its 55-storey hotel.

When all outlets are completed, its total space will amount to 550,000 square metres. Of the total, about 20% has been reserved by retail outlets under the Central Group.Wallaya Chirathivat, executive vice-president for business development at CPN, said the company would spend 300 million baht in the first year of operations to promote the project. A similar budget would also be spent the following year.

She expected there would be about 150,000 shoppers per day, earning the company 140 billion baht each year.

**RDN** · 28-04-2006, 10:14 PM

Damn. I wanted Gaysorn to get it. I love Gaysorn Plaza - such a nice air conditioned walk-way to get from the BTS to somewhere interesting.

**Fabian** · 28-04-2006, 10:44 PM

Originally Posted by klongmaster

anyone know where the embassy are going to build their new one...

Khon Khen maybe

I understand that they just sell part of their land in BKK so I guess the embassy will stay there.

**William** · 16-05-2006, 09:17 AM

A further update on this story:

REAL ESTATE / PRIME DOWNTOWN BANGKOK SITE

British embassy completes sale of nine-rai plot to CentralThe British government yesterday completed the sale of part of its Bangkok embassy compound on Phloen Chit Road to the Central Group, the country's largest retail operator.

The price of the prized nine-rai plot to Central affiliate Tiang Chirathivat Real Estate Co was not disclosed but industry experts estimated it at three billion baht.

Central edged Land & Houses Plc, the country's largest residential developer, in the contest to acquire the site. The company wants to turn the plot into a shopping area, serviced apartments or a hotel and entertainment anchor to complement its nearby Central Chidlom store.

Intense competition in the retail business in Bangkok's central business district has driven Central to seek ways to build on its existing businesses, which are now constrained by limited space, according to industry analysts.

Central executives declined to comment on the deal, but the British Embassy said yesterday it was the largest-ever property sale by the Foreign Office. The historic residence, the embassy and the "green character" of the compound would be preserved, it said.

About 11 million (770 million baht) of the proceeds will fund redevelopment of the remainder of the compound, including new staff accommodation, recreational facilities, remodelling of the embassy offices and security work.

The embassy said that the 32.3-rai compound, purchased in 1922, was larger than needed. It said the land sold was the most polluted and noisiest part of the compound, next to the six-lane Phloen Chit Road and the BTS skytrain.
The War Memorial and statue of Queen Victoria would be moved to appropriate sites near the residence, officials said.

**sharon** · 16-05-2006, 09:58 AM

I never did like David Fall (The British Ambassador). He has never contributed anything to people (British or Thai) living here and seems only willing to put any effort into projects which directly improve his own circumstances. Needless to say, he never got in my knickers despite many drunken attempts.

The outgoing New Zealand ambassador (Alan Williams) is a fine man though.

**lom** · 16-05-2006, 10:04 AM

Originally Posted by sharon

Needless to say, he never got in my knickers despite many drunken attempts.

Errm, can you give a hint of why he failed..

**RDN** · 17-05-2006, 07:21 PM

Originally Posted by lom

Originally Posted by sharon

Needless to say, he never got in my knickers despite many drunken attempts.

Errm, can you give a hint of why he failed..

Big hint:

**Butterfly** · 17-05-2006, 07:32 PM

Originally Posted by sharon

I never did like David Fall (The British Ambassador). He has never contributed anything to people (British or Thai) living here and seems only willing to put any effort into projects which directly improve his own circumstances. Needless to say, he never got in my knickers despite many drunken attempts.

The outgoing New Zealand ambassador (Alan Williams) is a fine man though.

So I am assuming you are hunting the diplomatic targets... are you a man or a woman

Scampy is that you ?

**aging one** · 17-05-2006, 07:52 PM

One more giant mall next to at least six other malls, it boggles the mind. Shopping street okay but shopping street of malls no, damn. Lets see. Central Chidom, MBK, Siam Center, Discovery Center, Paragon, and Siam Square, Then add the World Trade Center, and the Mall opposite it.

Boggles my mind.

**Butterfly** · 17-05-2006, 08:20 PM

Thai style of competition. It's like going to Pantip, thousands of small shops selling the exact same thing at the exact same price

They have no idea what a market segmentation is so they sell the same thing over and over again in the same location

They think by staying all together they will all get a share of the game without realizing that their over competition is destroying the very market they are trying to serve

**sharon** · 18-05-2006, 12:16 AM

Originally Posted by lom

Originally Posted by sharon

Needless to say, he never got in my knickers despite many drunken attempts.

Errm, can you give a hint of why he failed..

Because he is a pickled tosspot. His poor wife has put up with his dalliances for as long as she can remember and he has no sense of decorum; trying to get in other ladies' knickers whilst she is in the room with him. He just doesn't care.

I don't think him and the Italian Ambassador are on speaking terms after an attampt on his wife at a swanky Tsunami aid ball held last year at the American Ambassador's residence. I know various people have tried to have him removed from the post, but after bringing in a huge amount of money recently for the Foreign Office, I think his position is safe here a while longer, sadly.

**sharon** · 18-05-2006, 12:20 AM

Originally Posted by Butterfly

Originally Posted by sharon

I never did like David Fall (The British Ambassador). He has never contributed anything to people (British or Thai) living here and seems only willing to put any effort into projects which directly improve his own circumstances. Needless to say, he never got in my knickers despite many drunken attempts.

The outgoing New Zealand ambassador (Alan Williams) is a fine man though.

So I am assuming you are hunting the diplomatic targets... are you a man or a woman

Scampy is that you ?

I'm sorry if I wasn't clear, but no I don't go hunting diplomats. I consider Alan and his wife good friends and will be visiting them in New Zealand later in the year on my way back from a trip I have to take to Santiago.

I've never been called Scampy before.

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