BANGKOK, 26 JUNE 2024
The industrial business of Frasers Property Industrial Thailand is witnessing robust growth driven by rising demand for factories and warehouses. This growth is supported by increasing FDI inflows and the expansion of the manufacturing sector. The company has adopted a comprehensive four-dimensional operational strategy focusing on Solutions, Services, Sustainability, and Smart & Innovation to deliver high-quality products and services to its customers. Expanding its footprint into regional markets such as Indonesia and Vietnam, Frasers Property Industrial Thailand is set to invest 25 billion baht with the aim of increasing its managed area to five million sqm over the next five years.
Mr. Peerapat Srisukont, Acting Chief Executive Officer of the industrial business at Frasers Property (Thailand) Public Company Limited, remarked: “The leasing demand for factories and warehouses is continuously increasing. This growth is primarily due to the ongoing expansion of foreign direct investment (FDI) amidst the intensifying geopolitical landscape, alongside rising demand from the manufacturing sector. The company has devised robust strategies to fortify its business both domestically and regionally, underscoring its position as the number one industrial real estate group in Thailand, Indonesia, and Vietnam, managing a vast area of 3.55 million square metres.”
Frasers Property Industrial Thailand’s growth strategy is built on four key pillars:
1. SOLUTIONS: Offering a comprehensive range of product solutions, providing high-quality leased factories and warehouses that cater to the diverse needs of customers. This includes ready-built, built-to-suit, and the latest innovation, built-to-function. The company’s innovative industrial building development combines ready-built and built-to-suit concepts, creating ready-to-use buildings with specialised features. With over 50 locations nationwide, including general zones and free zones, the company is strategically well-positioned in key industrial and logistics areas. Moreover, the company plans to use a land bank for the development factory and warehouse for sale. This serves as an alternative option for customers and expands the business operation.
2. SERVICES: Comprehensive services delivered with a professional touch. Frasers Property Industrial Thailand’s highly skilled and experienced Property Management team provides expert care on property and consultations to our customers in dealing with government agencies such as BOI, industrial estates, the Customs Department, and others to make customer operations convenient. The company is committed to enhancing the quality of its factories and warehouses through Asset Enhancement Initiative (AEI) projects, which focus on modern design, integrating functions that better meet the operational or business needs of its customers. Moreover, the company will upgrade logistics parks (Park Enhancement Initiative: PEI) to improve the quality of services. This initiative enhances the quality of life for occupiers at factories and warehouses by adding green spaces and a range of wellness amenities, such as football fields, running tracks, and rest areas for truck drivers.
3. SUSTAINABILITY: Committed to social and environmental responsibility through sustainable practices. Frasers Property Industrial Thailand will look towards securing national and international green building standards such as LEED, EDGE, and TREES certifications, in alignment with the Group’s ESG Goals. This will include the integration of clean renewable energy technologies such as solar roof installations, EV chargers, and a smart metering system for monitoring and analysing energy use.
4.SMART & INNOVATION: Leveraging cutting-edge technology to optimise operations, integrating digital platforms that blend advanced technologies for project development, enhanced safety, and environmental management. Moreover, the company has FlexFix application promptly addressing maintenance needs, ensuring tenant satisfaction as an example.
During the first half of FY2024 (October 2023-March 2024), Frasers Property Industrial Thailand delivered approximately 50,000 sqm of space to customers, including both built-to-suit and built-to-function warehouse buildings. The company has upgraded and enhanced existing buildings for customers through its AEI projects.
There are also development projects currently being prepared for delivery in the second half of the year (April-September 2024). These include a Last Mile Warehouse spanning 21,000 sqm in Samut Prakan province, designed to support City Logistics, as well as a ~65,000 sqm facility in Binh Duong Logistics Park, Vietnam, tailored for e-commerce customers. Collectively, these new developments will increase the managed space to 3.63 million square metres. The company plans to invest more in Thailand, Indonesia and Vietnam
“Despite new entrants in the market, we remain confident of our ability to drive robust growth and plan to invest over 25,000 million baht to expand our managed space to five million sqm within five years. Additionally, the company aims to increase the green-certified area to 4 million sqm. This move reaffirms our successful leadership in the industrial real estate sector,” stated Mr. Peerapat.invest over 25,000 million baht to expand our managed space to five million sqm within five years. Additionally, the company aims to increase the green-certified area to 4 million sqm. This move reaffirms our successful leadership in the industrial real estate sector,” stated Mr. Peerapat.
