The Treasury Department has clarified that a rental fee based on return on assets (ROA) to be charged to Airports of Thailand (AoT) for use of Suvarnabhumi airport on top of the current revenue-sharing rental fee is only a proposal and needs further discussion with the tenant.
The new rental fee, which would significantly raise AoT's rental fees for Suvarnabhumi airport, as the airport operator would pay fees based on both ROA and revenue sharing, came after AoT's 10-year rental contract with the Treasury Department expired.
The planned rental fee hike would comply with the Finance Ministry's regulations that the fee be adjusted after the conclusion of that 10-year rental period.
"The Treasury Department, with the proposed rate, will be able to charge a more appropriate rate," the department said in a statement. "The proposed rate for the 30-year contract represents 30% of asset value, which is in line with international standards for property rent."
Moreover, the proposed rate, accounting for 20-25% of AoT's operating income, is below large land plot rents for commercial use, now at 25-40%. Chulalongkorn University, which conducted the study, took into account that the property is rented to state enterprises, the Treasury Department said.
Under the ROA formula, Chulalongkorn University has proposed charging in a range of 1-5% of asset value in each area. Aero area, which accounts for 43% of Suvarnabhumi airport's total space, will be imposed at 1% of asset value; non-aero area, representing 32% of the total space, is collected at 3% of asset value; and new development area, representing 25%, will be charged at 5% of asset value.
AOT shares closed yesterday on the Stock Exchange of Thailand at 39 baht, down 50 satang, in heavy trade worth 11.05 billion baht.
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