SET-listed JWD InfoLogistics Plc, an integrated inland logistics service provider, has teamed up with Singapore-based Store It! Management to establish a new joint venture company for a self-storage business in the city.
The company is named JWD Store It Co, with registered capital of 100 million baht. JWD owns a 90% stake while the Singapore firm holds the rest.
This business aims to provide self-storage solutions and fully air-conditioned facilities to target urban and condominium dwellers who have limited storage space.
The first self-storage operation is on Krungthep Kritha Road with an area of 2,000 square metres.
"We have managed this facility for more than five years and have an 80% occupancy rate," said Charvanin Bunditkitsada, chief executive of JWD.
JWD Store It opened a second facility at Zy Walk shopping mall on Chulalongkorn Soi 16 in June with an area of 6,000 sq m.
Mr Charvanin said it has witnessed greater potential in the self-storage business and recognised a new opportunity to grow in the central business districts (CBD) in Bangkok.
"The Siam area is a high-density residential and shopping area, where limited storage space is affects many residents in a growing number of condominiums in the CBD," he said.
JWD Store It is seeking to open another facility in Sathon next year on 4,000 sq m and expects to become a leader in self-storage operators by operational area in the near future.
Across the three locations, JWD Store It will have a combined self-storage capacity of 12,000 sq m by the first quarter next year.
The next phases will see the operation of strongrooms, art storage, wine cellars and Store It! express services.
Mr Charvanin added Store It! Management has operated in the self-storage business in Singapore for more than 14 years and has expanded operations to cover Hong Kong, Malaysia and South Korea.
In Thailand, JWD will be allowed to promote the business and will share know-how.
"Compared with five years ago, there are many more providers of self-storage services, numbering more than 10, with large-, mid- and small-sized players," he said.
"For JWD, we are ready to expand in CBD locations and expect to receive a healthy response."
Mr Charvanin is confident that JWD's revenue will grow by 10% to 3.26 billion baht this year because the overall logistics segment in the region has performed well.
JWD reported that revenue in the first half rose by 23.5% to 1.45 billion baht and net profit for the period increased 9.2% to 90.4 million baht.
Founded in 1979, JWD InfoLogistics, a subsidiary of JVK Group, handles logistics services for a range of items.