Longer leases sought for Bang Sue Grand Station area
THE PRIVATE SECTOR has called on the authorities to grant a longer lease of at least 60 years and offer more incentives to develop the Bt68-billion commercial area at Bang Sue Grand Station as an Asean link and business hub in five to 15 years.
“Bang Sue Grand Station will not only be a railway junction, but also a new rendezvous of Bangkok,” Omsin Chivapreuk, governor of the State Railway of Thailand (SRT), told a market-sounding seminar for the project yesterday in Bangkok.
More than 200 attendees from such industries as property, hotel, finance and commerce, both local and international, were briefed by the SRT on the ambitious project, which is divided into three phases of development of its 218 rai of land involving several parcels at Bang Sue Grand Station, which is envisioned as becoming the country’s major railway hub.
About Bt10 billion of investment would be required to develop 35-rai Zone A, Bt24 billion for 78-rai Zone B and Bt34 billion for 105-rai Zone C.
Besides the commercial area, the 87.5-rai Zone D would be transformed into a mass transport and transit hub under the “world-renowned garden interchange plaza” concept with a common area linked to the other zones.
There will also be a park and ride facility and skywalks connecting to the subway and Skytrain rapid transit systems.
Zone A was designed as a smart business complex, Zone B as an Asean commercial and business hub and Zone C as a smart, healthy and vibrant town.
The project will be developed under the “transit-oriented |development” concept that integrates urbanisation with transportation.
Team Consulting Engineering and Management Co was engaged by the SRT to complete a feasibility study of the project within 240 days.
With its high commercial potential, the Bang Sue complex can become a hub of Greater Bangkok’s transport links with electric trains in the metro area and commuter trains connecting the city and the suburbs, Omsin said after opening the seminar.
The area would be a gateway to both Suvarnabhumi and Don Mueang International airports as well as the second stage expressway.
The terms of reference for the projects in this area would be more likely drafted faster than for Makkasan Station.
The business model should be open to both granting investors long-term land leases and forming joint ventures under the public-private partnership scheme.
According to the project’s timeline, the SRT will next outline the master plan within a month, then establish potential market interest and the range of alternative public-private partnerships in a few months, or by October or November.
Although the project attracted great interest from many businessmen, they are still concerned over the lack of preparation for a well-managed logistics networks in its surrounding areas.
Naris Cheyklin, chief executive officer of Singha Estate, said the company was interested in the project and would join the bidding. However, the project seemed to have many unclear points, especially the timeframe to develop each zone, which would affect developers’ decisions.
Call for more privileges
The authorities should grant more privileges such as a moratorium on rent for some areas such as multipurpose central and green areas. Land leases should also be 90 years.
“The commercial and residential projects are most likely to come first,” he said.
Pornarit Chounchaisit, managing director of Pornpailin Development, said the project was intriguing, but it should have land leases of at least 60 years to attract foreign investors.
Suwan Lertpunyaroj, president of Grand Uni Land Co, said the master plan should be drawn up in such a way as to harmonise all the buildings that were planned to be constructed in each zone.
Pravit Pong, chief executive officer of Black Canyon (Thailand), said that if the project was |successful in launching Zone A |in 2023 after the opening of |Bang Sue Grand Stationas |scheduled, the Bang Sue complex would be a world-class Asean destination.
The area should be developed with attractions like at Marina Bay Sands or Sentosa in Singapore to draw tourists.
Tourism income as a choice from this part could help shore up the country’s economy, as it was losing its competitive advantage in labour costs, he added.
