Raimon Land, Mitsubishi Estate to jointly develop $277m office building

Image from pixabay

Thailand’s property developer Raimon Land has established a 60:40 joint venture with Japan’s Mitsubishi Estate to develop One City Centre with a total investment of 8.8 billion baht ($276.57 million), according to the company’s announcement on Tuesday.

Of the total amount, it will spend 5.5 billion baht on construction and 3.3 billion baht on a 30-years land leasing contract. The project is expected to be completed in the fourth quarter of 2022 and will start generating revenue in early 2023.

Raimon Land’s chief executive Lionel Lee said that when this project starts operation, the company’s revenue will surge by 30 per cent.

“By the time that One City Centre is completed, there won’t be a lot of new supply in the market. We are confident that it will generate the revenue of 60 million baht per month in the first year and increase to 80 million baht per month in the following years,” he said.

One City Centre will contain 61 floors with an estimated total rental area of 61,000 square meters, with about 92 per cent marked out as office space and 8 per cent as retail area.

The building is to be constructed on a prominent land plot on Ploenchit Road covering a total of 6 rai and 28 square wah (9,712 square metres) of space.

It will be directly connected to the Ploenchit BTS Station, and surrounded by a host of amenities including a leading shopping mall and five-star hotels.

Raimon Land targets the revenue to reach 5 billion baht this year owing to The Loft projects in Asok and Silom.

It plans to launch two projects worth 11 billion baht in the second half of this year. One is the joint venture project with Tokyo Tatemono Asia Pte Ltd on Sukhumvit Road, and the other is in Ratchathewi area.