Frasers Property Industrial (Thailand) or "FPIT", ASEAN's leading provider of modern industrial property development in Thailand, under Frasers Property Group (Thailand) Public Company Limited or "FPT", highlighted that the industrial real estate market continues to grow from the increases in foreign direct investment and an expanding Thai economy. FPIT experienced continued growth across its presence markets of Thailand, Vietnam and Indonesia with an average occupancy rate of 85%. This year, FPIT is committed to expand 150,000 square metres of warehouse and factory space. By 2026, FPIT has set a goal to increase the total asset under management (AUM) to 4 million square metres, valued at THB 100 billion. The company has also introduced its new "Built-to-Function" solution and further strengthening the sustainability standards to meet growing market demand.
Mr. Sopon Racharaksa, Chief Executive Officer at Frasers Property Industrial (Thailand) Company Limited, revealed that with Thailand’s economy on the post-pandemic recovery, the industrial real estate market continues to grow this year. Despite the potential impact of the global economic recession on the export sector, certain industries are experiencing growth, thanks as well to increased overseas investment in the Thai market. Gaining opportunities from the global geopolitical situations, Thailand also holds a strong potential in becoming prominent production hub in the region. In addition, the emerging trend of sustainable business creates more demand for sustainable factories and warehouses in the market. This allows FPIT to thrive as an industrial real estate leader offering Green Building Solutions, enhancing sustainability in the supply chain.
To maintain FPIT status quo as the leader in modern industrial property market, FPIT has been deploying two key approaches: “We Are Ready” and “We Are Different” in navigating through industrial business landscape. FPIT offers the on demand Ready-Built solution and makes a difference in the specialised facility Built-to-Suit solution.
FPIT’s performance has reaffirmed its position as the leading industrial real estate developer in ASEAN with a portfolio comprising AUM 3.5 million square metres of warehouse and factory spaces and an average occupancy rate of 85%. To further strengthen FPIT position as the leader, the company has set the goal to increase the total AUM to 4 million square metres by 2026. By the end of this year, FPIT continues investing to expand 150,000 square metres to the portfolio including new park development with investment budget of THB 10 billion.
Currently in FY2023, FPIT has handed over a total of 140,000 square metres of Built-to-Suit warehouse and factory space to customers. FPIT's overseas investments in the industrial park and warehouse in Binh Doung, Vietnam, and the logistics center in Karawang, Makassar, Banjarmasin, Indonesia, have experienced continuous tenant growth with high occupancy rates.
At the Shaping the Industrial Future, Unlocking Customer Experience press conference, FPIT announces its plan to increase its competitive edge which gears towards becoming one-stop solution provider within the next 3-5 years. The solutions and services include 1) Introducing the flexible logistics space, the small-scale city warehouse which increases efficiency 2) Continuation of factory and warehouse developments in prime strategic locations 3) Developing industrial township and industrial park that combine different asset classes including factory, warehouse, commercial building, and residential property. This model adds value to the landbank and fosters sustainable development model for the industrial business.
FPIT has introduced the new solution, "Built-to-Function" in response to the evolving market demand. This solution specifically caters to logistics provider customers (3PL) and owner occupiers that require specialised warehouse functions. Leveraging from the existing both Ready-Built and Built-to-Suit assets, the new Built-to-Function incorporates tools and features that meets customers' specific demand and includes sustainability function across all assets.
With the emerging trend for sustainable real estate, FPIT strategically utilises its experience and expertise to design and develop green buildings that meet industrial standards which match its Group-wide 2050 net-zero carbon goal. The company is dedicated to enhancing its assets to comply with international standards such as LEED and EDGE. To date, over 500,000 square metres of factory and warehouse spaces have received either LEED Gold, Silver, or Certified endorsements. FPIT further commits to upgrade all its existing assets to meet international green standards, resulting in tenant’s cost and energy savings while fostering the development of a net zero community.
"FPIT firmly believes that its comprehensive range of high-quality solutions and services, coupled with its sustainability-driven assets, is capable of meeting customer needs, boosting productivity, and enhancing overall experience. FPIT considers this as the driving force behind its sustainable and resilient growth." Mr. Sopon concluded.
