Central Group has set a new Thai real estate record in its successful bid for the British Embassy Bangkok site.
Central will pay more than THB20 billion (US$572 million) for the 23-rai plot of land on Wireless Road in Ploen Chit, adjacent to its existing Central Embassy shopping mall. The company plans to construct a mixed-use project on the land, which – given the land price tag – will undoubtedly require a very tall office and apartment complex in order to recover the capital investment. It will connect to Central Embassy.
The price Central paid equates to about THB2.2 million (US$63,000) per square yard which is – according to Thai media – the highest rate ever paid in Thai real estate trading. It marks a massive premium over the THB900,000 (US$25,700) per square yard that it paid for the original 9.5 rai plot it bought from to construct Central Embassy.
Emotions have run high over the future of the embassy, with many locally residing British expats creating a petition last year to save the embassy. They wanted the largely tree-covered open space and distinctive architecture preserved, and – more specifically – “not to become a lifeless and faceless office building or shopping mall”, as described by website Coconuts Bangkok. The site reported the petition drew little support.
Image: Coconuts Bangkok
