Treasury Dept eyes property purchases in euro zone

The agency also hopes to offer a lease on property in a prime area of Bangkok to the French Embassy, should it first terminate a contract with Natural Park for development of the land.
 Naris Chaiyasoot, director-general of the Treasury Department, yesterday said officials were studying investment opportunities to buy land and property overseas, particularly in the European Union, where land prices have fallen as a result of the euro-zone economic crisis.
 The department hopes to take advantage of the lower prices to invest in property that could be used by Thai government agencies, he said.
 “We have received reports that land prices in Europe, in particular in France, have dropped sharply and that many plots have been put up for sale, so we are considering buying and developing some of those properties,” Naris said.
 The property could be used as government agency offices, or for trade exhibitions to promote Thai products, he added.
 Meanwhile, the department is considering terminating its contract with the Natural Park for the development of land located between Charoen Krung Road and the Chao Phraya River, due to delayed property development by the company, the agency chief said.
 It has been seven years since the two sides signed an agreement to develop a 5-rai area and an old building, but the project has made no progress, he said, adding that the French Embassy in Bangkok is interested in leasing the property.
 The department is consulting with the Office of the Attorney-General over what to do if the fire-fighting unit run by Bangkok Metropolitan Administration, which currently occupies the area, does not move out.
 The BMA argues that Natural Park has broken a contract clause related to the fire-fighters’ unit vacating the area.
 If the public prosecutor advises that the company has breached the contract, the department will hold another round of bidding to develop the property, he said.
 Under the contract, Natural Park agreed to pay Bt1.35 billion to the Finance Ministry for a 30-year lease, and a separate fee of about Bt278 million.
 The department also plans to make use of its land for social purposes, Naris said.
 The agency recently offered a 6-rai plot close to Bangchak BTS station to the Sports Authority of Thailand at an annual rent of only Bt100 per rai.
 To date, 900 plots of department land have been allocated for social development purposes around the country, he added.