TCC Group, a Thai beverage and retail group, have started what is being described as one of the largest real estate projects in Thailand’s capital, hoping to turn the project area into a new landmark for the city.
The 167,000-square-meter complex, named One Bangkok, will partially open in 2023, when the construction of the first building and surrounding areas is completed.
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Panote Sirivadhanabhakdi, the group chief executive at TCC Assets Thailand, hailed the project as the largest in terms of investment value within Thailand, claiming it will become one of the 10 tallest buildings in Southeast Asia.
TCC and its partner, Singapore-listed Frasers Property, will invest about TH฿120 billion (US$3.9 billion) into the project’s development. The development will have a total floor space of 1.8 million square meters.
“All buildings and facilities will be ready to serve local residents, tourists, and international clients by 2026,” said Panote, who also serves as group chief executive of Frasers.
The development’s five office buildings are expected to accommodate up to 500 local and international companies, employing 50,000 to 60,000 people, whose spending will support retail business in the shopping area of the city, the company said.
The workforce “is expected to spend in the surrounding shopping areas, while a substantial number of tourists are expected to visit the area due to the project’s high level of accessibility,” said Urasate Navanugraha, asset development director for One Bangkok.
“The development’s five office buildings are expected to accommodate up to 500 local and international companies, employing 50,000 to 60,000 people.”
One Bangkok is expected to intensify the already strong competition in the city’s retail and real estate sectors, analysts said.
Bangkok is continuing to add additional attractions as Thailand begins to draw a growing number of international tourists. In November, Thai mall developer Siam Piwat and food and retail group Charoen Pokphand opened the TH฿54 billion (US$1.8 billion) Icon Siam megamall, which houses 525,000 square meters of retail floor space on the west bank of the Chao Phraya River.
The site for One Bangkok sits on some of the most expensive land in the heart of the city and belongs to the Crown Property Bureau, a legal entity that manages land and other assets for the Thai monarchy. The lease period for the plot of land is 30 years, and it can be extended for another 30 years after that.
The project spans five office buildings containing 500,000 square meters of space and four shopping complexes offering 180,000 square meters of retail, alongside a cultural hub, multi-concept square, and exhibition area. It also contains three residential buildings and five hotels with a total of 1,100 rooms, including a small boutique hotel and a luxury Ritz-Carton. The tallest of the office and residential buildings will be a 430-meter tower.
TCC owns 80.1 percent of One Bangkok, while Frasers holds the remaining 19.9 percent. Panote said that 60 percent of the TH฿120 billion (US$3.9 billion) investment funds will come from project financing, likely raised from local banks.
Panote said One Bangkok fits the government’s policy to spend heavily on rail projects and transportation links to improve life for the Thai public. The company is investing massively to create new landmarks that will link with the government’s continuing infrastructure projects.
Few concerns exist about One Bangkok’s profitability, Urasate said, noting the risk diversification strategy of creating an integrated mixed-use project that can attract several types of clients, rather than a single-use shopping mall.
For more on this story, go to Thailand Construction.