Ratchadaphisek sale likely turned a profit

Ratchadaphisek sale likely turned a profit

The government likely made a profit from selling the controversial 33-rai land plot off Ratchadaphisek Road that had been acquired earlier by Khunying Potjaman na Pombejra, the ex-wife of ousted former prime minister Thaksin Shinawatra, says the Agency for Real Estate Affairs (AREA).

The listed developer Supalai Plc, the auction winner, paid 1.8 billion baht for the plot, or 136,653 baht per square wah. AREA president Sopon Pornchokchai said the price was appropriate as the land was not on the main road.
He estimated the value of a comparable 16-rai plot on the main road at 310,000 baht per square wah, a rise averaging 9.5% per year from 2003.
AREA's calculation showed the price of the 33-rai plot rose 11.3% per year on average based on the 772 million baht the Financial Institutions Development Fund received in 2003. That transaction was later nullified after it was established that Thaksin's endorsement of the purchase, when Khunying Potjaman was still married to him, constituted a conflict of interest.
Mr Sopon said the plot carries no restrictions on what can be developed despite being near the Thailand Cultural Centre.
Supalai shares closed yesterday on the SET at 14.50 baht, up 20 satang, in trade worth 430 million baht.