SKYY9 Centre Office Deal Marks Second Largest Property Transaction in Bangkok
The Social Security Office's acquisition of the SKYY9 Centre raises questions regarding its valuation and occupancy rates.
The SKYY9 Centre office tower in Bangkok, acquired by the Social Security Office (SSO) for 6.9 billion baht, is reported to be the second-largest office transaction on record in the city, according to property consultancy Colliers Thailand.
This complex, located on Asok-Din Daeng Road, was purchased three years ago and has drawn scrutiny due to its valuation and occupancy metrics.
Colliers Thailand's research and communication director, Phattarachai Taweewong, stated that although the SKYY9 transaction ranks among the top three office deals in Bangkok, it is notably situated outside the central business district (CBD), contrasting with the largest and third-largest transactions that were both located on Sathon Road.
The SKYY9 Centre occupies a 3.48-rai site with a gross building area of 95,000 square metres, of which approximately 39,000 square metres is available for lease.
Phattarachai estimated that the land and construction costs for similar buildings in the area range significantly, with land costs evaluated at 1.3 million baht per square wah and construction at 40,000 baht per square metre.
Consequently, the maximum price for the SKYY9 Centre, based on similar metrics, would not exceed 5 billion baht.
Concurrently, the Thai government has initiated an inquiry panel to investigate allegations from the opposition People's Party, which claims that the SSO significantly overpaid for the property, asserting its appraisal value was merely 3 billion baht.
In comparison, a recent land transaction near the SKYY9 Centre was valued at 800,000 baht per square wah for a 15-rai plot.
In terms of current occupancy, the SSO reported a rate of about 45%, with only 25% of the office space occupied as of early March.
An additional 20% is anticipated to be leased by year-end.
Phattarachai noted that for office towers, a minimum occupancy rate of 70% is generally sought by investors to deem the property attractive.
Historical data from Colliers Thailand reveals that the total value of office tower transactions in Bangkok from 2005 to 2024 stands at 78.4 billion baht across 40 towers, providing around 1.3 million square metres of lettable area.
Of this total, 56.8% is found within CBD boundaries, predominantly in the Sukhumvit, Silom, and Sathon districts.
Transactions outside the CBD were largely concentrated along Ratchadaphisek, Vibhavadi Rangsit, and Bang Na roads.
The largest recorded transaction was a 15-billion-baht deal in 2017 for an office tower on Sathon Road, notable for its strategic location and future listing plans on the Stock Exchange of Thailand.
This property is characterized by a massive gross building area of 300,000 square metres, featuring over 142,000 square metres of usable office space.
This complex, located on Asok-Din Daeng Road, was purchased three years ago and has drawn scrutiny due to its valuation and occupancy metrics.
Colliers Thailand's research and communication director, Phattarachai Taweewong, stated that although the SKYY9 transaction ranks among the top three office deals in Bangkok, it is notably situated outside the central business district (CBD), contrasting with the largest and third-largest transactions that were both located on Sathon Road.
The SKYY9 Centre occupies a 3.48-rai site with a gross building area of 95,000 square metres, of which approximately 39,000 square metres is available for lease.
Phattarachai estimated that the land and construction costs for similar buildings in the area range significantly, with land costs evaluated at 1.3 million baht per square wah and construction at 40,000 baht per square metre.
Consequently, the maximum price for the SKYY9 Centre, based on similar metrics, would not exceed 5 billion baht.
Concurrently, the Thai government has initiated an inquiry panel to investigate allegations from the opposition People's Party, which claims that the SSO significantly overpaid for the property, asserting its appraisal value was merely 3 billion baht.
In comparison, a recent land transaction near the SKYY9 Centre was valued at 800,000 baht per square wah for a 15-rai plot.
In terms of current occupancy, the SSO reported a rate of about 45%, with only 25% of the office space occupied as of early March.
An additional 20% is anticipated to be leased by year-end.
Phattarachai noted that for office towers, a minimum occupancy rate of 70% is generally sought by investors to deem the property attractive.
Historical data from Colliers Thailand reveals that the total value of office tower transactions in Bangkok from 2005 to 2024 stands at 78.4 billion baht across 40 towers, providing around 1.3 million square metres of lettable area.
Of this total, 56.8% is found within CBD boundaries, predominantly in the Sukhumvit, Silom, and Sathon districts.
Transactions outside the CBD were largely concentrated along Ratchadaphisek, Vibhavadi Rangsit, and Bang Na roads.
The largest recorded transaction was a 15-billion-baht deal in 2017 for an office tower on Sathon Road, notable for its strategic location and future listing plans on the Stock Exchange of Thailand.
This property is characterized by a massive gross building area of 300,000 square metres, featuring over 142,000 square metres of usable office space.
