Singha Estate Establishes Business Hub in Northern Bangkok on Promising Vibhavadi Road

Developing the 'S Oasis' Project, a Grade A Office Set to Open in 2021

         

Bangkok is increasingly showing signs of transformation in its economic center due to large-scale developments and expanding transportation networks. This opens up opportunities for project development in various sectors, both business and residential, especially around the new rail transportation hub known as Bang Sue Central Station, which accommodates around 300,000 passengers daily. This station serves as a vital link to important economic areas in the future, particularly the Eastern Economic Corridor (EEC), which is rapidly expanding. Consequently, areas connected to Vibhavadi Rangsit Road and the Ladprao Intersection have become strategically important locations attracting significant interest.

As a key trade and investment connection point in Bangkok, the potential of this location is being elevated to a gateway for multi-channel connectivity. It is a vibrant lifestyle area, home to communities from government sectors, state enterprises, and private company headquarters, along with comprehensive amenities for daily living such as hospitals, educational institutions, restaurants, markets, and shopping malls. Importantly, it offers a high quality of life with beautiful natural surroundings from three public parks: Wachirabenchathat Park, Queen Sirikit Park, and Chatuchak Park. This has led to a continuous increase in demand for office spaces and residential condominiums in the area, aligning with data from CBRE Thailand, which reported that by the end of last year, the Vibhavadi area, including parts of Phahonyothin and Ladprao roads, had an office space rental rate of up to 90%. The total office space in this area is approximately 908,000 square meters, with 236,800 square meters being Grade A offices.

Ms. Oranee Phoolkwan, Chief Executive Officer of Retail Business Development and Commerce at Singha Estate Public Company Limited, stated that Singha Estate recognizes the potential of the Vibhavadi Rangsit area, which is growing into a business hub in northern Bangkok. Therefore, they have invested in the Sun Towers building and developed the area around Chey Puang Alley, expanding the Sun Plaza market and food center. Recently, they have developed the S Oasis project, valued at 3.695 billion baht, located in Chey Puang Alley on Vibhavadi Rangsit Road, covering an area of 6 rai, 3 ngan, and 24 square wah. This Grade A office building, the first on Vibhavadi Rangsit Road, will be 35 stories high, comprising 54,000 square meters of rental space, 1,700 square meters of retail space, and parking for 870 cars, along with EV chargers and surrounding parking facilities for over 1,500 cars. Currently, construction is over 60% complete and is expected to be finished by the end of 2021. The company has appointed CBRE as the leasing agent for the office space.

"The S Oasis project is considered a Best In Class quality project of the company, with the concept of Enriching Life, committed to creating a quality community in line with Singha Estate's approach to generating sustainable value for the surrounding community. It is designed according to LEED standards, focusing on energy conservation, promoting efficiency and well-being through careful design and the use of low-pollutant materials, standard construction, enhancing safety, efficiency, and comfort in the workplace, and helping to reduce energy costs, which can also save business costs," she added.

 

Ms. Oranee further highlighted the project's features, stating that it is a smart and eco-friendly building that meets the needs of the New Working Culture by integrating the surrounding area to create a bright environment that inspires work with a relaxed atmosphere conducive to maximum productivity. It perfectly blends indoor and outdoor workspaces, along with technology to reduce touchpoints in common areas for safety and hygiene in the Next Normal era, accommodating the working styles of the new generation with flexibility in customizing the usage and amenities of the space as needed. Additionally, it enhances high-speed internet connectivity to facilitate agility and immediate collaborative work from anywhere at any time.

Currently, Singha Estate manages over 62,000 square meters of office space in the Sun Towers along Vibhavadi Rangsit Road, and once the S Oasis project is completed, the company will manage a total of approximately 116,000 square meters of office space, while also developing this area into the S District to create a new quality community in a promising location in northern Bangkok. Furthermore, Singha Estate also manages office spaces in the Singha Complex at the corner of Asoke-Phetchaburi Road and the S Metro building in the heart of Phrom Phong.

Regarding the performance of the Commercial Business Unit, the company has been able to operate according to its goals amid challenges during the COVID crisis in the first quarter of 2021, with an overall rental rate increasing from 2020 to 90%. The company is confident that this business still has high growth potential and can generate stable recurring income. In the next five years from 2020, the company aims to have a total rental space of 250,000 square meters, an 80% increase, while forecasting a 105% growth in revenue from the commercial real estate business, which is also a key strategy for strengthening the company's financial position in the future.