Two parcels of land near expressways will be leased to developers

FRIDAY, JUNE 23, 2023
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Two parcels of land near expressways will be leased to developers

The Expressway Authority of Thailand (Exat) announced on Friday a plan to increase revenue by leasing two sites adjacent to its motorways to private developers.

Exat governor Surachet Laopoonsuk said the projects are estimated to generate about 5.1 billion baht in revenue over 30 years.

Surachet said at a forum for developers that the two sites Exat plans to lease will serve as a pilot model for the agency for raising income outside its core business.

The plan was developed because there are about 680 hectares of unoccupied land near Exat expressways. All of it has the potential for development, Surachet said.

It will submit the projects for Cabinet approval before inviting private companies to bid for the land.

Surachet expects bidding for the sites will be held in the middle of next year.

One plot is in Samut Prakan province and the other in Pathum Thani.

The first site can be used for roadside facilities, such as petrol stations, restaurants, shops and malls. The project is estimated to cost 2.324 billion baht and spans about 9.6ha.

The second site is for roadside lodgings and a parking lot adjacent to Thammasat University's Rangsit campus. The land is about 12.8ha in size and is valued about 2.78 billion baht.

Two parcels of land near expressways will be leased to developers

According to Exat's study, the projects can offer investors a financial internal rate of return of 10% per year.

They will be 33-year joint venture contracts, with three years of construction and 30 years of project management.

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