Central Group’s long-held lease on a prime 47-rai (18.6-acre) plot, housing the Central Ladprao shopping complex in Bangkok, will expire on December 18, 2028. Originally signed in 1978 with the State Railway of Thailand (SRT), the lease was extended in 2008 for an additional 20 years, generating over 21 billion baht for SRT. Now, with only four years remaining, negotiations are underway between Central Group and SRT’s asset-management subsidiary, SRTA, regarding potential terms for lease renewal or redevelopment.
Central Group has formally expressed interest in extending the lease, emphasizing the site's value within Bangkok’s northern central business district, which benefits from proximity to four major rail lines and key roadways. However, the aging buildings may require a complete overhaul if the lease is renewed, raising the possibility of a substantial new investment or total reconstruction by Central. SRTA is set to hire an external consultant in 2025 to assess the site’s value and advise on the new lease terms. If an agreement with Central is not reached, the property may be opened to competitive bidding.
Real estate experts note the land’s strategic value and expect that redevelopment will likely exceed the previous lease’s 21-billion-baht valuation. This location is pivotal to SRT’s income from leasing assets, making the upcoming negotiations critical to both parties’ future plans.