‘SRT’ shakes again, 40,000 rai of railway treasure, opens a golden location in ‘Hua Hin’
With the burden of insolvency together with 180 billion baht, the government has to speed up the reform of the State Railway of Thailand (SRT), a 124-year-old organization, to return income. Release the debt that has been carried for decades. The key is to turn over land that is not used for transportation across the country. 38,469 rai worth 300 billion baht to develop income pumps. Thus leading to the establishment of a subsidiary company “SRT Asset Company Limited” or Railway Property Development Company Limited with a registered capital of 200 million baht according to the resolution of the State Enterprise Policy Committee (Person) and the Cabinet on 29 September 2020. past
Recently, we are looking for real estate professionals. Sit as a general to drive asset management. After all these years, “SRT” rented it out as a broken head. From the land in hand is of great value. but because of the lack of expertise Makes returns to the organization only 2,400 million baht per year or 1% of the asset value for “SRT Asset” has 3 main missions 1. Manage the old lease that has not expired to pay rent regularly. 2. Consider renewing the lease that is about to expire, 2,977 contracts, such as more than 100 contracts on Ratchadapisek Road to get the highest return and 3. Find a private investment to develop a large plot of land. with income from wages and revenue sharing SRT in return
Nirut Maneephan, SRT Governor, said that on September 9, 2021, a memorandum of understanding (MOU) has been signed with SRT Asset, which is considered an important asset management reform of SRT. T. To generate income for the organization in the long run according to the rehabilitation plan and is the starting point for delivering assets to subsidiary companies to manage instead “All ownership remains owned by SRT, we only transfer the management rights to them. The first phase will gradually transfer large assets that have already contracted 75 contracts worth 1,645 million baht to be completed in October. for the subsidiary to be managed immediately, such as opening an auction, then gradually transferring until the completion of 12,839 contracts, valued at 3,166 million baht, within 2022.”
“Nirut” opens highlight of 75 contracts, ready for auction immediately, has Plot A, next to Bang Sue Central Station, area of 32 rai, developed into an office building and Plot E, in the red building area, area of 79 rai, developed for commercial use There is also a 21-rai Thonburi station near Siriraj Hospital. Developed as a mixed-use project There are serviced apartments, hotels and wellness centers. Supporting the Orange Line (Min Buri – Cultural Center – Bang Khun Non) and the Red Line (Taling Chan – Siriraj – Salaya) with Siriraj Station as a connection point.
In addition, there are two other plots of Hua Hin land in the Prime Area that have expired and given to the subsidiary to open a new auction: “Centara Grand Beach Resort and Villas Hua Hin” with an area of 71.65 rai of Central Group. The contract will expire on May 15, 2022. Currently, the SRT draft TOR has been completed. Not later than the end of this year, an invitation will be announced. Give to the private sector to lease development for 34 years, divided into 30 years of procurement, additional construction improvements for 4 years. From the appraisal, it is expected to receive a return of 8,927 million baht throughout the contract period.
Nirut said that another plot is a golf course in Hua Hin, an area of 500 rai, next to Hua Hin Railway Station, and Boon Rawd Brewery Co., Ltd. is the former tenant. Currently, the contract has expired since March 31, 2015. There is a plan to develop into a mixed-use. Because next will not be just golf courses. There must be a variety of activities. “The two plots in Hua Hin will be SRT Asset’s first mission to earn additional income. From the present, the railway’s income from land is only 2,000-3,000 million baht per year after the subsidiary took over the management. This will make the trains earn more every year. But this year is the first year that spawned. Still have not much income of 3,070 million baht since 2022, will increase to 3,834 million baht and more and more for a total of 10 years, it is expected to have income of 125,175 million baht and in 30 years will have income of 631,628 million baht in debt management and manage the organization in the future.”
Although the numbers seem far away, Nirut is confident that revenues are on target. Because there is a large plot of land ready to be developed, whether in the 11 km area, an area of 325 rai, will be given to a subsidiary company for 50 years of investment, with an investment value of 69 billion baht, to develop into a mixed-use project with hotels, offices, residences, exhibition centers Expected to receive a return throughout the contract period of 60 billion baht. There is also a river station, an area of 271 rai, worth 88,780 million baht, developed into a mix-use. Makkasan Station Including RCA land 62 rai on Rama 9 Road along the Bang Sue-Klongton railway line, with Narai Ruampipat Company Limited (Bangkok Bank Group) as the tenant, the contract is about to expire in 2022, excluding large station areas spread throughout countries such as Khon Kaen Station, although the auction button has not yet been pressed but as the land is in a golden location It is the tangible of Big Capital.
Recently, there has been a movement from large private sectors interested in participating in investments. “Thon Buri Station” that SRT will invest in the development of a mixed-use project worth 3,341 million baht from the opening of the interest test. There are many interested groups. including real estate, retail, hospital
While Dr. Boon Wanasin, Chairman of the Board of Directors of Thonburi Healthcare Group Plc., revealed that the company will cooperate with Siriraj Hospital to invest in PPP to develop Thonburi Station, with an investment of 4,000 million baht, with Thonburi Group will develop a cancer center. The rest will be developed by Siriraj Hospital, such as a health rehabilitation center. and are looking for other private sectors to join
“We are also interested in investing in a specialized medical center near Bang Sue Central Station, which SRT made a memorandum of understanding with the Medical Department. about land lease This project is a PPP investment worth 10 billion baht. We are negotiating with PTT to develop projects together as well.”
Dr. Boonpuek was a movement that happened suddenly. SRT transfers assets to the hands of “SRT Asset”, the first lot, next to the queue of Chatuchak Weekend Market and Central Plaza Ladprao, which SRT will transfer to the subordinate company to execute the current contract at Chatuchak Market. SRT is clearing the outstanding rent with the Bangkok Metropolitan Administration (BMA), while Central Plaza Ladprao is counting down the contract expiration in 2028, according to the contract, the old contract must be negotiated to terminate before the contract expires for three years.
It was said that “Central Group” had already sent Sik a request. But with buildings that have been in use for 50 years while the land has been developed a lot. There is a train passing by Therefore, the development model and rent will probably not be the same.
