The State Railway of Thailand (SRT) board acknowledged the results of initial lease renewal negotiations for the Central Ladprao space after Central Group proposed an investment plan to renovate the building. The board has not yet approved the plan and has assigned the asset subcommittee to examine the details thoroughly, including financial returns and legal considerations, to ensure a comprehensive review before making a decision on the matter.
Mr. Anan Pho-nimdaeng, Deputy Governor of the State Railway of Thailand, acting as Governor of the State Railway of Thailand, revealed that the board meeting on 25 Dec 2025 GMT+7 received a report on preliminary negotiations between SRT Asset Company Limited (SRTA), a subsidiary of the SRT responsible for asset management, and Central Inter Development Company Limited regarding the utilization plan for the commercial area at the Phahonyothin triangle, known as the Central Ladprao project.
Mr. Anan said the presentation at this meeting was only an initial negotiation report, with no approval of any plan yet. SRTA reported on the investment ideas and renovation of the existing property, which is a building in use for over 30 years. The Central Group proposed an additional investment plan of about 4.5 billion baht to renovate and upgrade the existing property, including the building structure to withstand earthquakes and internal systems such as escalators, air conditioning, and other essential long-used systems.
“The plan proposes starting renovations after the current lease expires in 2028, with a new 30-year lease contract. This represents a long-term investment to increase the asset's value and safety in the future. The SRT board has not yet approved any investment plan or lease renewal. They assigned the asset subcommittee to conduct an in-depth review of financial returns, investment plans, long-term value, and relevant legal issues to ensure thoroughness and maximum benefit for the SRT before bringing the matter back to the board for official approval.” Mr. Anan said,
Mr. Anan added that the key principle in evaluating the new project is to consider the overall picture throughout the lease term, including the investment value and returns the SRT will receive. The net present value of the project must not be less than the original value. Additionally, the extra investment is necessary because the building and structure are aged and must be upgraded to meet modern safety standards, especially reinforcing the building and earthquake resistance.
The Central Ladprao development project is one of the SRT's 10 large land plots, each with asset values exceeding 500 million baht. SRTA was assigned by the SRT board to commercially manage these assets to generate revenue for the organization. The Central Ladprao project is not the only ongoing project but part of a broader asset development plan covering multiple plots, all considered urgent and regularly reported on for progress.
SRTA has prepared plans for the SRT to consider, aiming to generate revenue from all 10 land plots by 2026, although each plot's progress varies depending on its location and project potential.
Mr. Anan explained the project approval criteria, stating that projects with asset value or investment exceeding 500 million baht must be submitted to the SRT board for approval. Projects under 500 million baht can be handled directly by the SRT Governor to improve management flexibility. He affirmed that development and asset management through SRTA will enhance space utilization efficiency, facilitate tenants and the public, and generate stable, sustainable income for the SRT in the long term.
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