LPN-JLL have unveiled a business expansion strategy which will see JLL tasked with spearheading the office leasing segment and as a real estate agent for Lumpini Tower Vibhavadi Chatuchak (Building A) project to serve growing demands for office space, which is shrewdly and skillfully building on the company’s dominant position in the residential condominium market of over 29 years, thus giving LPN a two-pronged growth. The new office building targets investors looking for long-term rental rates and corporate tenants.
Mr. Surawut SukCharoensin, Chief Strategy Officer, L.P.N. Development Public Company Limited (LPN) said at the signing of a Memorandum of Understanding ceremony to name JLL as sales agent for the project’s Building A that the Lumpini Tower Vibhavadi Chatuchak is an investment top-up through business. He said the company is intent to rejoin the office project development segment. In 1989, it’s Lumpini Tower (Rama 4 Road) and L.P.N. Tower projects enjoyed good success thanks to their well-placed locations matching the demands of urban office workers, on top of being conveniently accessible by public transports and easy reach to other key destinations. Development of the Lumpini Tower Vibhavadi Chatuchak will do well to fill growing demands for office space on Vibhavadi-Rangsit road –one of Bangkok’s highest potential growth areas.
“Lumpini Tower Vibhavadi Chatuchak is a product of LPN residential condominium development experience and strengths of over 29 years which help us create product value such as project design consistent with international green building standards, energy management & planning and renewable energy application to optimize efficient power usage economy, enhancing quality of life of office workers by provision of bicycle parking, ensuring good health we well as mental strength while also contributing to Co2 reduction within the building. At the same time, a new standard of office management services will be delivered by Lumpini Property Management Co Ltd.
It goes without saying that all quality office projects require the expertise and skills of a professional real estate specialist to ensure it can attract tenants successfully, so it gave birth to an LPN & JLL collaboration, which brings together their respective strengths, therefore Creating Share Values (CSV), that are crucial in reaching our end destination. This project has Building A and B. The company has chosen JLL as it sales agent for the Lumpini Tower Vibhavadi Chatuchak (Building A) to help find tenants, based on its strong track record in office building management, particularly on securing local and international corporate tenants, including as commercial real estate investment agent.
Moreover, the company has confidence in the project’s premium location in Vibhavadi-Chatuchak area as it boasts many offices as well as public utilities, department stores, hospitals, schools and universities and large public parks. There is also a network of inter-province trains, urban elevated rail and high-speed rail systems linking Bangkok with outlying provinces, starting at Paholyothin road, the former site of an original Mor-chit bus station, Lad-prao intersection and Vibhavadi Rangsit road. Though the area has no elevated electric train service, there are two available rail systems – the MRT line (Paholyothin and Chatuchak stations) and the BTS line (Mor-chit station) offering easy and convenient connections for both in-bound and out-bound travelling and major highways to other regions, there by offering the right travelling solutions.”
Mrs. Suphin Mechuchep, Managing Director, Jones Lang LaSalle (Thailand) co Ltd (JLL) said, “The Lumpini Tower Vibhavadi Chatuchak development clearly reflects LPN’s shrewd strategy to increase business expansion channels. This project gives LPN an entry into the office building market which currently is the strongest real estate market segment in Bangkok.”
According to JLL Thai Real Estate Information Center, Bangkok has a total of 8.9 million square meters of office space, with only 9% available for lease. Over the past seven years, office rental rates have continually risen. Average monthly rental rate of office space in Bangkok in all grades and locations stands at 667 Baht per square meter, increasing more than 4% from the corresponding period of last year and it is projected to rise further.
Ms. Yupa Sathienpabayut, Head of Office Leasing, JLL added that, “The office building market in Bangkok is currently witnessing a shortage and unable to meet tenant’s demand, particularly the high-quality office space which is fully or nearly occupied. The new offices under construction have also been pre-booked at a ratio of over 30% of total expected space and it is likely that the booking will reach 100% shortly after construction completion.”
“It is appropriate, and it is the right strategy that the opening of the Lumpini Tower Vibhavadi Chatuchak is done at this time [of the year]. The project’s location in located off a convenient Vibhavadi road is another good strategy because many companies are looking for office in Vibhavadi area to be close to their customers, suppliers and employees who are mostly residents in this area or in the adjacent Northern suburbs of Bangkok. It is also conveniently connected to the capital’s central business district. All told, this project is expected to achieve successful rental score sooner than later, particularly after construction is completed.”