BANGKOK, 23 JANUARY 2024
Frasers Property (Thailand) Public Company Limited, or “FPT”, Thailand’s first and leading fully integrated real estate company, remains cautiously optimistic in its outlook for the country’s real estate market, but highlights the need to closely monitor domestic and international risk indicators. For greater business resilience, the company aims to pursue new growth opportunities by evolving into a ‘Real Estate as a Service’ brand based on its ‘FPT Next 2025’ roadmap encompassing three operational pillars: Space, Community, and Sustainability. With aspirations to elevate Thailand’s real estate standards, these pillars are integrated across Frasers Property Thailand’s three business segments: residential, industrial, and commercial.
Mr. Thanapol Sirithanachai, Country CEO of Frasers Property (Thailand) Public Company Limited, noted the key drivers for this year’s real estate business momentum: the steady recovery of the tourism industry, increased private consumption, the government’s economic and real estate stimulus measures, (e.g., reduction of transfer and mortgage fees), and Thailand’s increasing appeal as the regional industrial and manufacturing leader. Nevertheless, economic headwinds such as high inflation, high interest rates, growing household debt, and rising geopolitical tensions involving Ukraine and the Middle East have to be closely monitored.
Despite these considerations, FPT is confident of business growth, supported by its flexible and agile business strategy, strong financial status, and diverse, multi-asset business that contribute to a stable revenue stream from developmental sales to property leasing services. By 2027, the company aims to achieve a revenue target of more than 30 billion baht, with the proportion of assets generating sales and recurring income at a ratio of 40:60, reflecting a commitment to sustained growth under a world-leading real estate brand. FPT has extensive experience and expertise to pursue business development that delivers high-quality service offerings catered to the diverse needs of different customer segments.
In 2024, FPT is targeting revenue of more than 13 billion baht from its residential business with the launch of seven projects with a total value of 11.6 billion baht, actively capturing the detached and luxury housing market. The industrial business is set to generate robust recurring income from leasable property business, involving the investment of 4 billion baht to expand its AUM to more than 150,000 sqm, adding to the current 3.5 million sqm of space across Thailand, Indonesia, and Vietnam, with a target rental occupancy rate at 87%. In the next two years, FPT is set to grow its AUM target to 4 million sqm. The commercial business remains strong with Grade A office buildings in CBD areas and high-traffic retail spaces: Samyan Mitrtown and Silom Edge, delivering a high rental occupancy rate at 93%.
To strengthen its position as a leader in the real estate industry, FPT is aiming to raise industry standards pursuing service innovation as a ‘Real Estate as a Service’ brand. This strategic focus will drive the company to deliver exceptional service, elevate quality of life, and integrate innovative, customer-centric services into the business. This aligns with the ‘FPT Next 2025’ roadmap announced in the previous year. The ‘Real Estate as a Service’ brand is deployed across three pillars:
1. Space-as-a-Service: Redefining physical space and equipment as a 360-degree rental service
Office rental services are developed based on the Core & Flex concept; offering standard office space (Core) and flexible space (Flex) as well as the PromptMove service, a fully-furnished office space designed under the ready-to-move-in and ready-to-use concept – an innovative solution to better accommodate the varied demands of businesses. Similarly, the industrial business has tailored its industrial infrastructure and functionality to optimise operational efficiency, such as Last Mile Delivery Centres to meet the needs of logistics businesses. In addition to the residential business, the company has penetrated various housing market segments by offering detached houses and townhomes specifically designed to cater to distinct spatial and functional nuances. The Home+ application has also been upgraded, reflecting a collaborative effort between partners to provide comprehensive end-to-end services, ranging from sales through to residency.
PromptMove Service
Home+ Application
2. Community-as-a-Service: Creating quality, inclusive places where people want to live, work, play, while listening to learn for strengthening communities
FPT is dedicated to enhancing the spaces it develops and the quality of life in surrounding communities. This is evident with the Park Enhancement Initiative (PEI), which aims to set new living standards for users through the renovations and additions of green areas, football fields, running tracks, and more. Furthermore, the company has focused on community-centric retail development by ensuring a positive impact and sustainable placemaking with the construction of business complexes to achieve mutual growth.
Park Enhancement Initiative (PEI)
C ASEAN SAMYAN CO-OP
3. Sustainability-as-a-Service: Enabling tenant companies to invest in higher ESG standards and performance with green building certifications and enhancements
With the goal of becoming a net-zero carbon company by 2050, FPT is also prioritising green certification for its developments in accordance with international green building standards such as LEED and EDGE certifications. Currently, the company’s factories and warehouses have been certified with LEED and EDGE standards of over 500,000 sq.m.
Asset Enhancement Initiative (AEI) can also enhance both industrial and commercial properties. New features as part of the property upgrade includes advanced tech features such as self check-in kiosks, smart car parking systems, and Indoor Air Quality (IAQ). In parallel, residential developments are being integrated with sustainable home features, such as ERV systems, solar PVs installations, and EV chargers.
Green Building Standards: LEED and EDGE Certifications
“FPT is a fully integrated real estate platform with diverse expertise and a history of innovative experience. We have a solid foundation for the company to pioneer real estate excellence in service innovation. Evolving into a ‘Real Estate as a Service’ brand will strengthen Frasers Property’s position, create new opportunities in the market, and elevate Thailand’s real estate market to international standards,” added Mr. Thanapol.
