ESR (Thailand), a joint venture between the Hong Kong-based ESR Group and Thai developer Asia Industrial Estate, is expected to exceed its initial investment budget of US$1 billion for 2023–2027 due to strong demand in the industrial sector.
Sayarm Tongkrabin, head of ESR (Thailand), said the company has already invested a total of $500 million over the past two years in five projects spanning over 800 rai, with a combined net lettable area of 744,702 square metres.
"We have invested half of our five-year budget in just two years, driven by strong demand from high-tech industries such as semiconductors and electric vehicle-related auto parts," he said.
ESR is in discussions with electric vehicle battery manufacturers and data centre investors looking to establish facilities in Thailand. It is also exploring investment opportunities in the life sciences sector in collaboration with government agencies.
"If market conditions remain favourable, we may consider revising the budget upwards," he said. "This year, we plan to invest in expanding industrial spaces in second-tier locations such as Khon Kaen, Surat Thani, Lamphun and Chiang Mai."
At present, ESR has five industrial estate projects across three provinces. The first project, ESR Asia Suvarnabhumi, spans 227 rai within Asia Industrial Estate in Samut Prakan, offering a total net lettable area of 230,156 sq m.
"One of our customers at the Suvarnabhumi site is a pharmaceutical manufacturer from Japan. They chose Thailand as it is a strategic location for the Southeast Asian market and offers a better-skilled labour force at the mid-level compared to other countries," Mr Sayarm said.
In this location, one of ESR's shareholders, Asia Industrial Estate, owns a total of 7,000 rai, with around 1,000 rai still available for new development. It plans to utilise this space to expand the second phase of ESR Asia Suvarnabhumi.
The second and third projects are located in Chon Buri. ESR Asia Laemchabang, situated on a 216-rai area within Rojana Laemchabang Industrial Estate, has a net lettable area of 192,273 sq m.
Approximately 95,190 sq m of this space is occupied by two US-based manufacturers: semiconductor producer Advanced Energy and Harman Kardon, an audio electronics manufacturer for electric vehicles. The latter expanded from its base in Suzhou, China.
"Despite a robust industrial sector, 2024 was still full of uncertainties," said Mr Sayarm. "We hope for more clarity in 2025, which could help maintain the momentum from 2024.
"Our company benefits from regional support within the group, which helps us stay updated on trends and challenges in the markets where the group invests."