O-NES Tower | 29 storey | Nana

Japan's Obayashi to build $273m skyscraper in Bangkok
Thai capital's tight office rental supply promises high returns
KOICHI KATO, Nikkei staff writer
June 07, 2018 12:07 JST

TOKYO -- Japanese general contractor Obayashi plans to build a 30 billion yen ($273 million) skyscraper in Bangkok, part of a new push into the Southeast Asian property development market.

The 29-story building is to be completed by 2021 in the Thai capital's busy Khlong Toei district. It will have a direct link to a station on the city's Skytrain mass transit line.

Thailand's economy is growing at a roughly 3% annual clip, and Bangkok does not have enough buildings to meet rising demand. As office vacancy rates fall, Obayashi is banking on high rental returns from the project.


The contractor plans to handle the entire development, including the acquisition of 7,000 sq. meters of land. The building is to have a total of 85,000 sq. meters of floor space, making it the biggest of Obayashi's wholly owned rental properties, be it in Japan or overseas.

The new building is to feature internet of things and artificial intelligence technologies, designed to enhance security and the climate control system.

Obayashi already owns a midsize building in Bangkok and has rented out part of the space. But the new investment marks its first large-scale development primarily for rentals.

The company's real estate business posted a 15% sales increase for the year ended March, to 44.5 billion yen. Operating profit rose 20% to 8.6 billion yen.

Starting with the Bangkok project, the contractor hopes to tap into opportunities in Southeast Asia and elsewhere. Other Japanese builders, too, are keen to grow abroad. Shimizu, for instance, is focusing on North America and other locations.
https://asia.nikkei.com/Business/Companies/Japan-s-Obayashi-to-build-273m-skyscraper-in-Bangkok