BAM Advances Proactive Strategy to Transform NPA into Enduring Value by Joining Forces with Arsomsilp to Revive “Baan Phra Phithak,”...

        Bangkok Commercial Asset Management Plc. (BAM) has proceeded with its mission to turnaround assets to sustainably drive the economy and the society. BAM has inked a Memorandum of Understanding (MOU) with Arsomsilp Institute of the Arts (Arsomsilp), which specializes in design for sustainable development by integrating art and community wisdom to create value for the society and the environment, along with improvement of quality of life on a balanced basis. The cooperation is carried out under the “Land Wealth Project: Model for Revival of Assets for Creative Economy” to bring “Baan Phra Phithak,” a house of 88 years old back to life, together with revitalizing the historically valuable old town area of Tuk Din alley into a creative space that connects people, brings opportunities, generates income, and uplifts the quality of life for the community, hence a model for asset management.           

Mr. Vasant Thienhom, Independent Director, Chairman of Audit Committee, and Chairman of Nomination and Remuneration Committee, revealed that BAM has all along played a significant role in Thai economic stabilization through management of non-performing assets (NPAs). It aims to transform abandoned or idle assets into assets of value again, steering businesses to grow alongside social responsibility, or CSR in process, which integrates economic, social, and environmental dimensions into main work processes of the organization.     

BAM views that NPA is a “land wealth” with potential for extended improvement to contribute to social and community benefits in concurrence with bolstering the quality of life of people in the area. However, true development for value has to lie in the insights into the local context, history, and people of the area. It has thus launched the “Land Wealth Project: Model for Revival of Assets for Creative Economy.” The Company seeks to elevate development of NPAs to outpace management of assets in general toward sustainable shared values. It attaches importance to community engagement in synergy with Arsomsilp’s expertise in cultural architecture. This will respond to demand for preservation of the area values and appropriate use of the area at present and in the future.                  

The land wealth project will be another model of BAM to foster the value of the NPAs to sustainably serve social and business demand. It is believed to be a model for NPA development that can be extended and enhanced in other areas nationwide as a driving force for quality urban development,” added Mr. Vasant.  

        Dr. Rak Vorrakitpokatorn, BAM Chief Executive Officer, said that the land wealth project aligns with BAM’s vision: “revival of assets to drive Thai economy and society toward sustainable growth” starting from development of “Baan Phra Phithak,” an 88-year-old, 2-story house on an area of 135.1 sq.wah worth more than 36.78 million baht to become a model for revival and further use of NPAs, leading to new opportunities to generate income for the community while conserving historical value and identity of the area. This reflects BAM’s determination to uplift distressed asset management as a “tool for creation of new value,” meaningfully connecting economic, social, and environmental dimensions.   

The “Baan Phra Phithak” land wealth project and the old town area of Tuk Din alley underline the CSR in process embedded in every development stage of the organization and its determination to operate the business under the ESG framework. The project aims to cater to and benefit the community through the seamless integration of the well-being concept with the arts and design district with aspiration to turn this area into a ”vibrant arts and design district.” Project implementation is expected to take about 8 months. In the initial period, around the end of 2026, the Baan Phra Phithak area will be used to organize activities showcasing works of art, along with having it promoted as a new tourist landmark that links the economy with the surrounding old town neighborhood.     

“Baan Phra Phithak” is in a prime location of the old town area, being near the Giant Swing and Bangkok City Hall, prominently surrounded by famous dining places and check-in spots. After project completion, this area will become lively again. There will be positive changes in a broader range and higher quality of life for over 600 local people through attraction of new faces to touch and feel the charm of this district, hence increase in number of commuters and tourists from formerly around 3,000 recorded in the area and also higher tourist spending. This will bring a promising opportunity for local entrepreneurs and encourage community-level social and economic activities.      

“This is the core of the concept: “Transforming Non-Performing Assets into Enduring Value,” which is not only in business perspective, but also in value contribution, revolving around the 5 Gs, i.e., Good for the employees, Good for the shareholders, Good for the customers and debtors, Good for the society, and Good for the country, blended in BAM’s operation mindset,” said Dr. Rak.  

        Ajarn Theeraphon Niyom, Co-Founder of Arsomsilp Institute of the Arts and Chief Executive Officer of Arsomsilp Community and Environment Architect Co., Ltd., Arsomsilp Institute of the Arts, added that the land wealth project is a special occasion where Arsomsilp teams up with BAM to produce positive changes to Bangkok’s old town district of historical value. “Baan Phra Phithak” serves as a powerful lever to drive changes and integrate management of the area through development that incorporates diverse viewpoints and collaboration from all sectors, spanning the community, entrepreneurs, public and private agencies, and those in academic and professional fields like history, architecture, urban design, and management to jointly restore the vibrancy to the area in a sustainable manner.  

“We hope that Baan Phra Phithak will get started a new model of urban development that integrates people, culture, and economy while leaving no one behind. Today is not only the MOU execution date, but also marks the beginning of future design for this old town neighborhood to become vibrant again. On this occasion, I would like to thank BAM for recognizing the value of this asset in terms of not only economic value, but also social and cultural value, and the potential for sustainable urban development. I am confident that this cooperation will build long-term value to the community, the town, and the society,” added Ajarn Theeraphon.     

Biography of Colonel Phra Phithak Yutthaphan 

• Born in 1879 in Muang District of Nakhon Ratchasima Province

• Began civil service career in 1894 as a Clerk in the Army Department, Nakhon Ratchasima Province

• After 1914, was transferred to the Army Records Department, and served as Chief Accountant of the Red Cross Hospital, Public Health Medical Department 

• Former Permanent Secretary of the Army Comptroller General’s Department

• Retired from duty after 1932

• Passed away in 1957, aged 78

Information on Baan Phra Phithak Yutthaphan