Industrial estate developer Frasers Property Industrial (Thailand) will shift to more flexible business models and expand to smaller- and larger-scale projects to cope with growing demand and rising competition.
Chief executive Sopon Racharaksa said the industrial property market had continued to grow this year, driven by deglobalisation, supply chain disruption, geopolitical issues, regional relocations, and foreign direct investment competition.
"Due to the Russia-Ukraine war and China plus one, Southeast Asian countries have attracted overseas investors in the industrial sector who want to relocate," he said. "However, since each country in the region offers attractive packages, we have to revise strategies to entice these investors as well."
He said the company will add a new product–built-to-function category, a mix of ready-built and built-to-suit factories and warehouses which would be a standard building with added equipment and functions designed to fit a customer's requirements.
The company's logistics business will expand to offer both smaller and larger scales than the existing ones.
The smaller scale will cater to customers such as e-commerce companies that require locations closer to inner city areas.
"Some customers are willing to pay a higher cost if the facility is closer to their business," Mr Sopon said. "Our major shareholders have several available assets in inner city locations for this new model that we will shift to."
TRA Industrial Township.
One of the assets will be developed on an area of 40,000 square metres, conveniently located just 15 minutes away from the Sathon area.
In addition to smaller-scale projects, the company is also undertaking the development of a larger industrial township on a 4,700-rai plot along Bang Na-Trat Km 32 Road in Samut Prakan.
The township project will comprise residential projects for sale and new-age industrial areas for sale, while business parks, incubator areas, logistics parks and commercial and services areas will be for rent.
"We have entered the first wave of industrial demand. They are mainly relocations from China to Southeast Asian countries like Thailand, Vietnam, Malaysia and Indonesia," said Mr Sopon.
"The second wave will involve establishing new locations to have additional production bases rather than relocations. They will use these new locations to export their products."
During 2024-26, the company aims to spend 30 billion baht and have a total of 4 million sq m of warehouses and factory space, or assets under management of 100 billion baht, up from the current 3.5 million sq m worth 75 billion baht, and revenue of 7 billion baht per year, up from 5 billion baht.