Supalai buys old Australian embassy site

Supalai buys old Australian embassy site

An aerial view of Sathon Road shows a square low-rise building that formed part of the Australian embassy. Supalai will develop a mixed-use project at the site. SOMCHAI POOMLARD
An aerial view of Sathon Road shows a square low-rise building that formed part of the Australian embassy. Supalai will develop a mixed-use project at the site. SOMCHAI POOMLARD

SET-listed developer Supalai Plc (SPALI) plans to develop a mixed-use project worth a combined 17 billion baht at the Australian embassy site on Sathon Road after successfully acquiring the plot for 1.45 million baht per square wah.

Chief executive Prateep Tangmatitham said yesterday that the company will develop the project as a new landmark on Sathon Road, one of Bangkok's prime locations. The project will comprise residential units and Grade A office spaces.

"Sathon is a commercial location with a high-density residential area, surrounded by many sources of jobs and facilities," Mr Prateep said in a release. "It is one of the most popular locations among expatriates."

The company started designing the mixed-use project with a green concept in mind. The project is forecast to help drive revenue growth by 15-20% a year.

Supalai reported yesterday that it had won the bidding for the Australian embassy plot occupying 7.3 rai with a road frontage of 70 metres on Sathon near Suan Phlu at a cost of more than 4.6 billion baht.

The embassy in March this year offered the plot for sale, with property consultant JLL Thailand appointed as the sole agent. The floor area ratio on Sathon Road is up to 10:1, according to JLL.

The price of 1.45 million baht per sq w is a new record high for a land transaction on Sathon Road.

The previous highest price on record for the road was 1.2 million baht per sq wah for the former Alliance Francaise de Bangkok plot four years ago, according to property consultant Nexus Property Marketing Co.

But the highest recorded price in Bangkok is still 2 million baht per sq wah for a 1.5-rai plot including a house on Sukhumvit Soi 24. That property was bought in 2013 to enhance the potential of a condominium development on the plot next to it.

The Sukhumvit Soi 24 land and house sale was an exceptional case, as the plot was used as a complement to another plot. The property was used to furnish an exit to Sukhumvit Soi 24 for a new condo development on Sukhumvit Soi 22, helping boost condo selling prices by 40%.

The highest price per sq wah for an entire land plot for project development was for a three-rai plot on Chidlom Road bought by SET-listed developer SC Asset Corporation Plc for 1.91 million baht per sq wah two years ago.

Not far from that spot, the British embassy last year offered its last 25 rai plot on Wireless Road through an auction with property consultant CBRE Thailand as the sole agent. The winning bidder was not officially announced.

According to the Treasury Department, the land appraisal price for land plots on Sathon Road during 2016-19 was 750,000 baht per sq wah, up 25% from 600,000 baht during 2012-15. This was the largest increase in appraisal prices in Bangkok.

The highest appraisal price was on Silom Road at 1 million baht per sq wah, up 17.7% from 850,000 baht in the previous appraisal.

SPALI shares closed yesterday on the Stock Exchange of Thailand at 22.90 baht, down 3.60 baht, in heavy trade worth 1.07 billion baht.

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