CP Land Plc, the property arm of agribusiness conglomerate Charoen Pokphand Group, plans to pay US$16 million this year to take over an office building in Rangoon.

Vice-president Naravadee Waravanitcha said on Friday soaring demand for office space in the Burmese commercial capital had prompted the company to invest.

“Office rents per month in Yangon [Rangoon] are as high as 2,400 baht [$80] a square metre, more than double the maximum rate for Bangkok’s grade-A office space,” she said.

“We believe our investment will break even within five years.”

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CP Land will sign a memorandum of understanding to buy an eight-storey office building from a local owner.

With a lettable area of 6,000 sq.m, a building formerly used by government agencies will have rental rates of $60-80 per sq.m per month, Ms Naravadee said.

 

This article was originally part of a report by the Bangkok Post on 27 June 2015.