Central Pattana Public Company Limited ("the Company") would like to announce that its Board of Directors' Meeting No.3/2007 held on July 23, 2007 has passed the resolution to approve Central Pattana Nine Square Company Limited ("CPN Nine Square"), a subsidiary in which the Company holds 60% of the shares, to enter into the long term land lease agreement with the landlord of Rama 9 project. The total land area is 15 Rai - 1 Ngan - 8 Square Wah. The details are as follows;
1. Agreement No.1: the lease agreement during construction with no monthly lease fee for the period of 3 years, from July 1, 2007 to June 30, 2010.
2. Agreement No.2: the lease agreement for the period of 30 years, from July 1, 2010 to June 30, 2040.
3. The upfront lease payment for agreement No.1 and 2 is totaling 620,000,000 Baht.
4. Under the agreement No.2 CPN Nine Square has to pay the land rental of 700,000 Bath per month, which will be increase at a rate of 15% every 3 years from July 1, 2007 onward. In case of CPN Nine Square does not violate the terms of agreement, it has the right to renew the contract for 10 years (till June 30, 2050) and pay monthly rental rate at the same rate as at June 30, 2040, which will be increased by 15% every 3 years for 10 years.
The former building lease agreements and related agreements are terminated by the effect of these 2 new lands leasing agreements. Moreover, should there be any progress on the development of this Rama 9 project, the Company will further announces the details in due course.
Please be informed accordingly.
