EIA revoked for prime Bangkok condo

Mahadlek Residence
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Environment Impact Assessments (EIAs) were in the spotlight late last week when a Bangkok condo had its EIA report revoked after a more than three-year legal battle.

Other legal actions over the development date back as far as 2009.

Thailand’s Central Administrative Court ruled that Mahadlek Residence (pictured), a high-end residential development off Ratchadamri Road, did not comply with building control laws and regulations.

The court noted the EIA report was unlawful because the calculation of floor area ratio was not in compliance with building control regulations and city planning.

It found the narrow streets surrounding the planned Bangkok condo plot could not accommodate the construction of the high-rise project.

Stock Exchange of Thailand listed property developer Thai Factory Development Plc was set to develop 516 units over 43-storeys on the leasehold 1.3-rai land plot, in is regarded as a prime location near the centre of the city.

The Bangkok condo residential project was set to offer studios, one-bedroom units, two-bedroom units and penthouse units ranging from 34.70 sqm to 175 sqm. The total value of the project, according to the developer, was set to be THB 2.55 billion.

The developer’s website, accessed today, stated: “At present, the Mahadlek Residence project is seeking an Environmental Impact Assessment (EIA) approved from the Office of Natural Resources and Environmental Policy and Planning, to start the project’s construction and project will be pre-opening sale (sic) around Quarter 4 of 2015.”

It added the company bought the sub-leasehold right over the land owned by Office of Privy Purse from Capital Planner Co., Ltd. for THB 61 million, with a purpose to develop a residential project. The lease term is 30 years, it said.

This story indicates why potential buyers of Thailand property should ensure that their selected development has a watertight EIA report before signing any legal agreement and parting with cash. At ThailandProperty.News we always urge buyers obtain legal advice from experienced Thailand property lawyers before they embark on their purchase.

In this case a law firm would have highlighted the ongoing legal activity and likely advised against buying at what is not reported to be an abandoned building site.

Andrew Batt
The author of this article is Andrew Batt, the founder and editor of www.thailandproperty.news. Andrew has been writing about property and real estate issues in Thailand and Southeast Asia for more than 10 years. He has worked for PropertyGuru Group, DDproperty, Dot Property Group, Hipflat and AsiaRents. He has also produced content for leading Thailand property developers and real estate agencies.
Email: andrew.thailandpropertynews@gmail.com.


  1. Thanks for your comment John.

    For anyone buying off-plan and not in completed projects, I think it’s essential to ensure, or have your law firm ensure, that the development has an EIA. In this case though, as you’ve said, there is no such thing as a “watertight” EIA, but I think lawyers would have advised potential buyers and investors that this project’s EIA was under dispute. That’s been the case for a long time with this particular project.

    Andrew – ThailandProperty.News

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