SET-listed developer Golden Land Property Development Plc (GOLD) plans to spend 5 billion baht to develop FYI Center, an office and hotel project in Bangkok, and aims to break even in 10 years.
An artist's impression of FYI Center, which will comprise two 12-storey office buildings and a 14-storey hotel in Klong Toey.
As the location near Soi Phai Singto in Klong Toey is off the central business district, office space at FYI will tap the grade B segment, while the hotel with 239 rooms will offer accommodation for 2,500 to 3,000 baht per night, said president Thanapol Sirithanachai.
“We are to use one of Fraser and Neave’s hotel chains,” he said.
Singapore-based Fraser and Neave was acquired early last year by Charoen Sirivadhanabhakdi’s group, while Golden Land's major shareholders are his two sons, Panot and Thapana.
FYI Center will be located on a plot of nearly nine rai opposite Queen Sirikit National Convention Center. It will comprise two 12-storey office buildings and a 14-storey hotel with a total lettable area of 48,000 square metres.
Thai Obayashi Corp is contractor for the offices with a construction value of 2 billion baht. Siam Commercial Bank will provide a credit line of 2.6 billion baht.
Mr Thanapol said the rental rate for office space will be around 700 baht per sq m per month. If the occupancy rate reaches 80-90%, Golden Land plans to put FYI into a real estate investment trust a few years after completion in 2016.
“The overall market in the second half is better as politics is more peaceful, but there is still a concern about how long the economic drivers will continue,” Mr Thanapol said. “The agricultural sector and exports could still get stuck.”
The government’s spending of the annual budget will help boost the economy in the second half, with GDP growth of 2% forecast for this year.
In the first half, Golden Land posted 1.6 billion baht in presales, with 1.1 billion from housing sales and 500 million from rental offices on Sathon Road and the Golden Land Building on Soi Mahad Lek Luang.
GOLD shares closed yesterday on the SET at 9.55 baht, up 10 satang, in trade worth 73.9 million baht.