Factory and warehouse developer Prospect Development Co will invest 22 billion baht between 2024 and 2028 to add new space covering 1.25 million square metres in total, with the aim of capitalising on growing demand in the market.
Managing director Rachanee Mahatdetkul said there is robust demand for factories and warehouses located in free trade zones, particularly from enterprises in China looking to relocate to Thailand in an effort to avoid the US-China trade war.
"We have had many customers from China since before the pandemic, driven by the US-China trade war. This trend continues to grow," she said. "The emerging sector is electric vehicles [EVs] and their supply chain."
Demand from India is also on the rise for somewhat different reasons. While Indian companies aim to expand their businesses, particularly in the area of EVs, into Southeast Asia, there are also businesses seeking to invest in the electronics business in Thailand.
In 2024-25, Prospect Development will spend 2 billion baht to construct factory and warehouse spaces totalling 250,000 sq m in free trade and general zones on existing plots of land in two locations -- Theparak in Samut Prakan and Wang Noi in Ayutthaya.
The company's plan for an additional 1 million sq m in the future, with an investment of 20 billion baht for the acquisition of a 2,000-rai area of land and space for construction, would be developed during the period 2026-28. Some 60% of this would be located in the provinces of Chon Buri and Rayong.
"We are interested in the Eastern Economic Corridor as it is a strategic move for the country," she said. "The other 25-30% would be located on Bang Na-Trat Road in Theparak, with 5-10% in Wang Noi."
As of the end of 2023, the company had factory and warehouse space of 750,000 sq m in total across seven projects under the name Bangkok Free Trade Zone, located in three locations in three provinces.
The seventh project, covering a leasable area of 36,000 sq m on Bang Na-Trat KM 10 Road, was launched last year and has achieved full occupancy.
Overall, the average occupancy rate of the seven projects stands at 91%, with an average renewal rate of 90%.
In this year's first quarter, the company signed new contracts for a combined area of 220,000 sq m, surpassing the target of 150,000 sq m, representing a 47% increase over the corresponding period last year.
The company expects to generate 1.2 billion baht in revenue by the end of this year, with 900 million baht coming from rentals and services, and 300 million coming from profits from the sale of assets to a real estate investment trust.
Last year, the company recorded 941 million baht in revenue, up 66% from 2022, with a net profit of 242 million.