Ticon Group, the developer of factories and warehouses for lease, is investing 8 billion baht this year to buy and develop 1,000 rai of land.
The group, comprising Ticon Industrial Connection Plc (Ticon) and Ticon Logistics Park Co (TPark), aims to increase leased space by 350,000 square metres this year, of which 250,000 will be for warehouses. The group's factory and warehouse space for rent totals 352,268 sq m.
Of the 8 billion baht budget, 5 billion will be for construction costs, while 3 billion is for land purchases. Some 2 billion will be allocated to Ticon for ready-built factories, and 6 billion to TPark for warehouses.
Ticon has projects in 15 industrial estates and parks, covering 2,669 rai of land, while TPark has warehouses in 29 locations covering 4,712 rai.
Patan Somburanasin, managing director of TPark, said the company will purchase more land in Bang Na, Bang Phli and the northern region following the acquisition of 253 rai in the northeast and south of Thailand.
Ticon will also launch a project in the Asia Industrial Estate (Suvarnabhumi), where it has received an environmental impact approval.
The group is planning to invest in custom-built factories and warehouses in southern Vietnam to serve the needs of its existing customers, and is conducting feasibility studies in Indonesia and Myanmar.
"We have customers who have operations in many countries, so they are willing to use our services overseas. But for Myanmar, we believe it is still hard to find ready-to-use land for a reasonable price, as there are not many areas that are ready in terms of infrastructure," said Ticon managing director Virapan Pulges.
The group's revenue in 2013 totalled 6.68 billion baht, up from 6.06 billion in 2012, with the majority coming from the sale of assets worth 5.52 billion to its property fund. Net profit increased by 9% to reach a record high of 1.4 billion baht.
Mr Virapan said 5.7-5.8 billion baht worth of assets will be sold to the company's three property funds, with dividends totalling 300 million baht, and the group expects revenue from factories and warehouses for rent to reach 1 billion baht.
"This year's revenue should be a bit higher than last year, but I must admit there are delays in investment for foreign businesses who have never invested in Thailand before due to the political unrest," he said.
The group has 412 customers, of which 53% are from Japan and 20% from Europe.
Shares of TICON closed yesterday on the Stock Exchange of Thailand at 16.9 baht, up 30 satang, in trade worth 155.8 million baht.