Prospect Logistics and Industrial Freehold and Leasehold Real Estate Investment Trust (PROSPECT REIT) plans to raise an additional 3.35 billion baht to acquire three industrial properties for its portfolio, capitalising on strong demand in the industrial sector.
Aon-Anong Chaithong, chief executive of Prospect REIT Management, the REIT's manager, said the investment would increase the REIT's total asset value to 8 billion baht, up from 5.4 billion.
"Many of the recently closed factories were small, standalone or located outside industrial estates. Those closures were attributed to the ongoing impact of the pandemic," she said.
"However, demand and supply remain robust, particularly in the Bang Na-Trat area."
Prospect's assets in this location, which are free zones and tied to import and export activities, reached full occupancy in just six months, exceeding its expectation of 95%.
The three new assets Prospect is targeting for investment, owned by its sponsor Prospect Development Co, are Bangkok Free Trade Zones 1, 2 and 3. These are located on Bang Na-Trat Road KM23, Theparak Road, and Bang Na-Trat Road KM19, respectively.
All three assets are either leasehold or ownership rights for land plots and buildings, with a total leasable area of 221,678 square metres.
Ms Aon-Anong said while the rise of electric vehicles has affected the internal combustion engine (ICE) automotive market, the effect on Prospect's tenants has been minimal, as most are in non-automotive industries.
"Our tenants manufacturing ICE auto parts are few, and some of them have transitioned to producing electronics instead," she said.
As of the end of June 2024, the company's portfolio totalled 292,332 sq m of net leasable area in four locations, comprising Bangkok Free Trade Zone 1, 2 and 3 and X44 Bang Na-Trat KM18.
The overall occupancy rate in the second quarter this year remained stable at 97.3%.
The most active investors in the second quarter were from Japan in the paper industry and China in the solar cell business, construction and building materials, and logistics services.
The proportion of investment by tenants from Japan and China rose to 24.1% and 22.5% from 23.2% and 20.5%, respectively, in the first quarter, while that of Thai tenants dropped to 26.2% from 28.8%.