UV has high hopes for new office tower

UV has high hopes for new office tower

Lofty rents reflect green efficiency

The listed developer Univentures Plc (UV) is confident of achieving 90% occupancy for its new Park Ventures office building on Wireless Road in 2012 with an initial rate of return of at least 13%.

 Managing director Thanapol Sirithanachai said the company had invested 3 billion baht for construction and expected to break even within nine years.

The complex will generate 300 million baht in revenue per year from office rents. Scheduled to open in September 2011, it will have a total lettable area of 27,000 square metres.

Monthly rents will be between 800 and 850 baht per square metre for a three-year contract, higher than the average in the area of 700 baht, said Nithipat Tongpun, executive director of CB Richard Ellis Thailand, the sole leasing agent.

Target tenants will be international companies that need to expand including service providers, insurance and consumer products, said Mr Nithipat.

He said many office tenants had put expansion on hold since 2009 because of economic and political uncertainty but inquiries had been reviving lately.

The office vacancy rate of all grades with a total area of 8 million sq m has been 14% in the past few years, and 16% for the estimated one million square metres of grade A space.

Between now and 2012, only two office buildings with a total of 100,000 sq m will be finished: Park Ventures and Sathorn Square, which is being developed by Golden Land Property Development and is located on Sathon Road.

Despite higher rents than the average, Park Ventures will focus on the fact that it is a green building. It cost 10% more to build than conventional buildings but tenants will see noticeable savings in electricity and water consumption.

“We are applying for a gold label from the Energy Ministry and LEED [Leadership in Energy and Environmental Design] from the US after completion next year,” said Mr Thanapol.

The complex will have a total area of 81,400 sq m and be worth 5 billion baht, comprising 33 storeys to house both office space and luxury hotel rooms.

It is located on a 5-rai plot on the corner of Wireless and Phloen Chit roads where UV signed a 30-year lease last year. The 2-billion-baht hotel, scheduled to open in 2012, is rented by TCC Group. Japanese chain Okura is managing it.

TCC Group is owned by liquor tycoon Charoen Sirivadhanabhakdi while UV is 56.4% held by his two sons Panot and Thapana Sirivadhanabhakdi through the investment firm Adelfos, which has registered capital of 2 billion baht.

UV shares closed yesterday on the Stock Exchange of Thailand at 3.04 baht, up 4 satang, in trade worth 29.7 million baht.

Source: http://www.bangkokpost.com