SRT board orders fresh review of Central Ladprao lease-extension talks
Decision on renewing the Central Ladprao lease has been deferred pending a closer look at the proposed benefits.
- The State Railway of Thailand (SRT) board has ordered a new review of the lease extension negotiations for the Central Ladprao site.
- The review will focus on the financial returns proposed by the tenant, Central Inter Development, to ensure the offer is appropriate and maximizes benefits for the SRT.
- The proposed deal involves extending the land lease for an additional 30 years after the current contract expires on December 18, 2028.
- As part of the negotiations, Central has proposed a THB4.5 billion investment to upgrade the property's buildings and systems.
Anan Phonimdaeng, deputy governor of the State Railway of Thailand (SRT) and acting governor, said the SRT board on December 25, 2025, instructed officials to revisit the negotiation report with Central Inter Development Co., Ltd. on the commercial use of the Phahonyothin Triangle site (the Central Ladprao project), focusing on the proposed returns and whether the offer is appropriate.
He said the board did not approve SRT Asset (SRTA) to proceed with signing a lease contract at this meeting, as it wants the SRT subcommittee overseeing and monitoring asset management to review the private-sector return proposal.
The subcommittee is responsible for asset management, commercial development and revenue generation.
Anan said there is still scope for further negotiations on details to ensure SRT secures the maximum benefit from its asset management.
According to SRTA’s report, the core proposal involves extending the land lease by a further 30 years, from the current contract expiry on December 18, 2028.
Under the preliminary plan, the tenant, Central, has proposed additional investment to upgrade buildings and engineering and mechanical (E&M) systems, such as lifts and escalators, with an estimated investment value of THB4.5 billion.
“The income structure for this lease would see SRT receive the main rent from SRTA, along with a profit share from the performance of subsidiaries.
The return from the Central land-lease extension must be no lower than the net present value (NPV),” Anan said.
The lease covers the Phahonyothin Triangle plot used to develop Central Ladprao.
The site totals 7.56 hectares, with a gross built area of 310,000 square metres, comprising the Central Ladprao department store, plaza zone, hotel, convention centre and office building.
The lease is due to end on December 18, 2028.
Central Inter Development currently manages the contract, having first leased the land in 1978.
The initial 30-year term ended on December 18, 2008, after which the parties agreed on a further 20-year extension from December 19, 2008, to December 18, 2028.
SRT’s total return over that 20-year term was THB21.298 billion.
With three years remaining on the current lease, the remaining scheduled rent already paid under the contract is THB1.471 billion in 2025, THB1.559 billion in 2026, THB1.653 billion in 2027, and THB1.752 billion in 2028.
