Frasers Property Industrial (Thailand) or FPIT plans to spend 10 billion baht to increase industrial space from 3 million square metres to 4 million sq m by 2025, with 50% of new development aimed at the "new economy" segment.
Chief executive Sopon Racharaksa said the 10-billion-baht budget for this year is more than three times higher than the average of 3 billion projected for previous years.
In 2022, FPIT plans to open new space with a combined leasable area totalling 200,000 sq m, focusing on the same locations such as Bang Na and Bang Phli, northern Bangkok from Nawa Nakhon to Ayutthaya, and the Eastern Economic Corridor.
He said clients in the new economy, such as e-commerce, express delivery, electronics and electric vehicles, will be the focus segment at around 30% of leasable area, which is the same portion as logistics providers, followed by the manufacturing segment at 25%.
The new economy segment will have new requirements for space as they opt for built-to-suit projects rather than ready-built projects with standard features, said Mr Sopon.
He said the competition is expected to intensify as the overall space in the market increased from 6 million sq m before the pandemic to 7 million sq m now.
Space is estimated to grow 9.5% in five years as more developers want to capitalise on the growth of the new economy segment.
FPIT aims to maintain the top position by increasing its market share to 60% from 40% prior to Covid-19, said Mr Sopon.
Notable projects include a 4,600-rai industrial township in Bang Na-Trat, a new micro-fulfilment project in Phra Pradaeng that offers same-day delivery for those living near the city, and a smart industrial and logistics park on 200 rai in Bang Pakong district in partnership with Mitsui Fudosan.
FPIT plans to continue expansion in Vietnam and Indonesia, where it currently has a combined space of around 200,000 sq m, through 4 billion baht in investment.
In the next 1-2 years, the company will double the total leasable area to 400,000 sq m to capture demand for international investors who want to grow business in those two countries, he said.
Mr Sopon said FPIT targets maintaining its 85% occupancy rate throughout this year with rental revenue of around 5 billion baht, up by 10%.
The company plans to divest some assets worth 1.5-1.6 billion baht to Frasers Property Thailand Industrial Freehold & Leasehold REIT to generate a stable investment source for future projects.
FPIT still has around 8,000 rai for development, of which 800 rai will be developed this year, he said.