Sena joins forces with Leo in warehouse, self-storage move
SET-listed developer Sena Development is joining hands with MAI-listed logistics service provider Leo Global Logistics to develop self-storage units and warehouses in Lat Krabang, Bang Na-Trat and Wang Noi to diversify and cut development costs.
Kessara Thanyalakpark, Sena managing director, said self-storage units and warehouses were attractive for investment, but new for the company as Sena's customers were all consumers, not businesses.
"In recent years, many housing developers have diversified to other property businesses like offices, hotels, warehouses and ready-built factories," she said. "We wanted to create a warehouse business to diversify and decided to join Leo Global Logistics."
Sena is looking at Lat Krabang, Bang Na, and Wang Noi in Ayutthaya for land plots to buy and develop a warehouse through a joint venture with the new partner.
Lat Krabang and Bang Na are close to Suvarnabhumi airport, while Wang Noi is a large logistics centre with high potential for land transport.
Sena will develop a vacant space of around 1,300 square metres at SenaFest, its shopping mall on Charoen Nakhon Road, for a digital self-storage facility, and will launch this project in the fourth quarter of this year.
Two other locations it is looking at for self-storage business are Ratchadaphisek-Rama IX and Ari as they are packed with condo units and office buildings.
"Self-storage has a low risk. To develop it, capital is not a problem but it depends on how feasible it is with land and development costs," said Ms Kessara, who is also an advisor to the Bangkok governor.
Kettivit Sittisoontornwong, chief executive at Leo Global Logistics, said self-storage was booming, particularly in locations packed with businesses and condo units.
Its latest self-storage facility, which was recently launched in Yaowarat, saw customers growing at double the rate of other locations.
"Three success factors for self-storage business are good locations, timely investment in the right location, and better facilities," said Mr Kettivit.
Leo Global Logistics yesterday signed a memorandum of understanding with SK Asset Management, one of Sena's subsidiaries, to launch a warehouse and self-storage joint venture.
"Sena can help find locations and develop warehouses and self-storage which will help us minimise development costs, likely by around 10%," said Mr Kettivit.
"Self-storage has a high gross margin as it does not need manpower to run. Our other property business has a gross margin of 25%, but that of self-storage is over 45% and we even achieved 52% last year."