Our business operation
The Company engages in development and management of industrial properties which are Ready-Built Factory and Ready-Built Warehouse, with a strategic direction to pursue more development in Built-to-Suit Industrial property in order to cater for larger client base in accordance with its announcement of “Total Dimension” 3-year business roadmap underneath the transformation strategy to strengthen and enhance capability to compete in the long run, and stepping up to a leading provider of smart industrial platform. The Company has a plan to develop industrial property along with becoming total solution provider to drive for business sustainability. Frasers Property Thailand is ready to move forward and promptly collaborate with strategic partnership to enhance its latency through a group network to create new revenue stream in order to add value to its core business. The Company actively focus on new growth over new business segment to meet customer’s demand in the Industry 4.0 business environment. Frasers Property Thailand Group structure comprises 3 businesses;
Residential property business
GOLD is a property developer for housing, land, and horizontal residential projects ranging from single-detached houses, semi-detached houses, to townhouses. The utilities and infrastructure of the projects are developed to cover all price ranges to address the needs of differing customer groups. As of 30 September 2019, there was a total of 60 active projects with detailed project value, sales value, and income as follows:
2019 Residential Project Development Plan
In 2019, the Company launched 20 new residential projects with total project value of Baht 21,308 million, comprising product categories as followed:
|Projects||No. of Projects||Project Detail||Sales||Revenue||Remaining Units้|
|No. of units||Project Value (MB)||No. of units||Project Value (MB)||No. of units||Project Value (MB)||No. of units||Project Value (MB)|
|Total Townhome Projects||35||11,603||34,799||7,026||20,927||5,876||17,644||4,577||13,872|
|Two Grand Monaco||1||77||2,099||38||1,100||32||959||39||1,000|
|Single-detached House Projects||24||3,576||36,006||2,162||18,821||2,013||17,518||1,414||17,185|
Townhome - 14 Projects
Semi-detached house – 4 Projects
Single-detached house – 2 Projects
Industrial Property and Related Businesses
The Company provides integrated development of industrial properties with a strong portfolio of factory and warehouse of over 2.8 million square meters under management in key locations nationwide. Factory and warehouse offered by the Company are both in Ready-Built and Built-to-Suit type with a strong focus to expand Built-to-Suit development projects. The Company’s factories and warehouses are located in strategic locations under various industrial estates, industrial parks, industrial promotion zones, logistic parks, and free-trade zones of Thailand.
Business Operations by Product Types
1. Ready-Built Factory
The Company develops Ready-Built Factory of international standard in order to facilitate demand of manufacturers and companies who want to set up a business in Thailand but do not want to own the factories in order to reduce investment cost and avoid downside risk from uncertainties. The Company develops factories in many strategic locations of Thailand that can cater for manufacturers of different industries. The Company also provides other services related to setting up a business in Thailand since more than 80% of tenants are foreign companies.
The Company considers site selection of the factories based on demand of existing tenants as well as potential market demand in the near future. The Company also considers other factors when determining the locations including benefits under promotional zones, accessibility to international ports and airports, proximity to Bangkok as well as quality of infrastructure of industrial estates and/or industrial parks.
The Company develops factories in Export Processing Zone, General Industrial Zone as well as other areas as required by the tenants. The demand from tenants can be specific, for example manufacturer who wants factories in Export Processing Zone would also prefer to be within proximity of deep sea port.
Factories of the Company is a single storey building with mezzanine office, proper fencing and landscaping, and with attached guard house, parking spaces and truck loading area. The factories are of international quality and can be customized to the tenants’ specific requirement. The sizes range from 550 sqm. to 12,000 sqm. Typical sizes of the factories have been smaller over the years given rising demand of tenants with smaller-sized business operations. The factories have 1 - 3 tons floor load and is built on steel portal frame which does not require support from structural columns and hence provides more useable areas.
Leases between the Company and tenants are largely within 3 years. The Company will approach tenants for renewal closer to expiry date. Tenants also have an option to re-locate to other factory locations offer by the Company or rent factories of other sizes.
The Company also develops Built-to-Suit factories for tenants who want customized designs. Such tenancy is beneficial to the Company as the rental period is longer at around 5 - 10 years.
2. Ready-Built Warehouse
The Company’s wholly owned subsidiary Frasers Property Industrial (Thailand) Co., Ltd. or “FPIT” (previously known as TICON Logistics Park Co., Ltd. or “TPARK”) is a leading developer in ready-built warehouses of international quality. Logistics is an essential business to distribute goods and supplies to other parts of the country and is a key to develop Thailand to become ASEAN hub. Presently, majority of logistics providers prefer to invest in technological software and logistics system rather than developing brick-and-mortar infrastructure. This creates an ideal opportunity for the Company to lease warehouses to these logistics providers.
The Company’s warehouses are located in strategic locations that are ideal for distribution centers. The warehouses are designed to suit modern logistics management systems, with clear heights, wide column spans, dock levelers, and sufficient floor loads.
Typically, warehouse leases are around 3 years with option to renew. Going forward, the Company expects more contribution of Built-to-Suit warehouses which has leases of more than 3 years. The average term of Built-to-Suit contracts is 10 years. The Company also offers Sale and Leaseback option for its customers
3. Built-to-Suit Factory and Warehouse
The Company develops industrial property of which its design meet customer’s requirement by focusing on the usage of each business operator in different industry. In addition, Built-to-Suit project could maximize factory and warehouse efficiency includes cost saving and to enhance productivity of business production as well as warehouse storage. The Company has a strategic location ready to develop Built-to-Suit project under industrial estates, industrial parks, industrial promotion zones and others zone in Thailand. Built-to-Suit project has a long-term contract between 10 to 15 years which positively affect occupancy rate in terms of driving a sustain revenue whilst reducing expense and advertisement cost.
During the year of 2019, The Company sold investment property by delivering Built-to-Suit warehouse which built in strategic location to customer, the project as such could grab attention and spotlight the Company’s customers. Besides, The Company has Built-to-Suit project in pipeline for further development.
4. Investment and property management business
The Company has a policy to invest in real estate investment trust for not less than 20% of total investment units to receive recurring investment return which is in form of annual dividend payment. In addition, the Company is also a property manager that manages property assets owned by FTREIT. This provides another source of stable income to the Company in form of property management fee.
5. Trust management business
The Company operates and manages real estate investment trust through its 70% owned subsidiary, Frasers Property Industrial REIT Management (Thailand) Co., Ltd. or “FIRM” (previously known as TICON Management Co., Ltd. or “TMAN”). The Company converted 3 property funds; TFUND, TLOGIS and TGROWTH into Frasers Property Thailand Industrial Freehold and Leasehold REIT or “FTREIT” (previously known as TICON Freehold & Leasehold Real Estate Investment Trust or “TREIT”) on 28 December 2017. Additionally, FTREIT acquired assets from FPT of 102,625 square meters in 2019, FTREIT has become the largest industrial real estate investment trust in Thailand with total assets value of more than Baht 37 billion. FIRM, as a REIT Manager, receives management fee on an annual basis and pays dividend to the Company.
6. Other services
- Modification of factory/warehouse building
The Company has an in-house design team, project development team and project management team. The Company is well positioned to assist customers in design and modification work of factory/warehouse as required by the customers.
- Procurement of utilities
The Company provides assistance to customers to procure utility services and other related assistance, as appropriate.
- Procurement of permits from the authority
The Company provides assistance to customers to obtain relevant permits and approvals necessary to commence manufacturing operations swiftly such as operation permit. Moreover, the Company also assists the customers to procure work permits for any of their foreign employees and this is deemed as one-stop service to customers from other countries.
- Other services
As the Company has been in the business for a long time and has good relationship with many business partners in different industrial sectors, the Company is in a unique position to provide other relevant services to the customers e.g. introducing suppliers or potential employees to the customers.
7. Other businesses
- Technology Group
Data center colocation services are deployed within a data center facility, providing shared rental space for organizations to bring in network servers and other computing hardware. A data center operator must ensure uninterrupted operations at its facilities, including providing power back-up systems to avoid downtimes in the event of power outages. In addition, they provide cooling equipment to maintain specific temperature conditions to prevent overheating of the servers.
Data center development projects must consider location and infrastructure support, supported by a pool of technical experts to ensure optimal design and security. The ability to scale up is also a crucial feature to cater to customers’ requirements in the evolving digital marketplace.
As technology and internet activity continues to develop rapidly, data centers play an increasingly significant role in centering storage and connectivity. Emerging technology over the last few years has enabled data centers to take advantage of the better performance and energy efficiencies of newer and smaller IT equipment.
The Company was granted an investment privilege from Board of Investment of Thailand (“BOI”) on 20 September 2019 for data center business operation underlying IT infrastructure development activities in accordance with benefit scheme stipulated in the Investment Promotion Acts
- Smart Solution
Smart solution is a new business venture utilizing advanced technology to enhance value proposition from multi-service integration and connectivity co-created by a strategic partnership’s sharing of resources, customer base, proprietary knowhow and expertise. Smart solution acts as an enabler, enhancing FPT’s competitiveness as integrated real platform provider in digital era and Industrial 4.0 to reach its full potential.
- Co-working space
Co-working business provides rental service for a shared workplace, often an office that differs from a traditional commercial lease space usually employed by small organizations, with key distinctions in functionality and aesthetic design principle that allows for flexibility and scalability alongside high quality amenities to cater for variety of needs across all organizations. Co-working space is designed to accommodate a range of possible alternative uses, offering customer the ability to rent out only what you need either private meeting rooms or a suite of office-like amenities such as a dedicated desk, or ‘hot-desks’ which refer to a shared desk for on-demand uses by tenants with flexible working hours to maximize space efficiency. Co-working is the new path of melding life and work in a sustainable fashion. Many of the benefits provided by an innovative fully-furnished facility includes shared common areas offering recreation space and café with barista, giving a sense of community under an entertaining and refreshing atmosphere to cater for the new generation lifestyles. The co-working environment is conductive to the truly organic collaboration and conversations, encouraging interaction and networking with new people to exchange ideas and expand business leads, as co-working spaces often run a variety of community events, workshops, and seminars for their members through branched co-working offices readily accessible for privilege member services which greatly superseding the typical serviced office model.
Through the strategic partnership with JustCo, the Company has launched its first co-working service facility located at the edge of Bangkok’s central business district, AIA Sathorn Tower with a combined space of 3,200 square meters spreading over two storeys, followed by the second venue across 3,636 square meters occupying three levels of the Capital Tower at All Seasons Place, and third venue covering 6 levels or 11,812 square meters at Samyan Mitrtown.
- Automation and Robotics Services
Automation and robotics business aims at providing services to customers who need technology to increase operational efficiency for industrial use, such as raw material feeding, production, random inspection, sorting, packing, and transportation. With advanced technology and the robotic capability to handle complexity together with a lower cost of robot production, robots is replacing human labor. In addition, the aging society currently embedded in the population structure of many countries, including Thailand, has raised labor shortage. This factor stimulates the replacement of labor by robots in key industries such as electronics and the automotive sector. Even in some industries which robots cannot fully replace human, there is a growing tendency to adopt robots to reduce the workload and enhance capabilities of workers, for example, lifting heavy objects or delivering large items.
Currently, PBA is in the process of requesting investment promotion privileges from the Board of Investment to operate software development according to the Investment Promotion Act.
- Co-working space
Commercial Property business
For commercial developments, it is GOLD’s policy to develop management efficiency and quality to better respond to its customer needs. It also promotes activities that encourage growth in its rental occupancy and enable continual increase in its revenues. At present, GOLD has the following commercial developments which are serviced apartments, hotels, and office buildings:
- FYI Center
FYI center is located at the corner of the Rama 4 and Ratchadapisek (Phai Sing To) Roads, close to the Queen Sirikit National Convention Center and within walking distance from the subway station which has direct access to the front of the building. This project comprises a 12-story office building and three underground floors, designed with flexibility in space utilization under the “Business + Creativity” concept. The project was completed in the second quarter of 2016 and was awarded the Gold Level certification of Leadership in Energy and Environmental Design (LEED) from the U.S. Green Building Council (USGBC) around the end of 2016.
- Goldenland Building
The Goldenland Building is an 8-story building with one underground floor that lodges a total rental space of about 11,000 square meters, located near the main shopping area of central Bangkok with shopping places such as Centralworld, Gaysorn Shopping Centre, and Central Chidlom, as well as famous nearby hotels such as the Grand Hyatt Erawan, and the InterContinental Hotel. The building is only a few minutes’ walk from the Chidlom and Ratchadamri BTS Skytrain Stations. The building is also designed to afford the occupants’ adaptability and greater design flexibility.
- Sathorn Square
Sathorn Square Office Tower is a 40-story commercial office building with 5 underground floors. It has a rental area of over 73,000 square meters, located in the heart of the central business district, at the Sathorn - Narathivas intersection with a direct passage link to the Chong Nonsi BTS Skytrain Station. The Sathorn Square Office Tower has a unique architectural design. Its rental spaces on each floor is designed to provide more open space, with no pillars, and increased flexibility in space usage and open floor office designs. The tower is an “Energy Conservation Building” that received the LEED Gold Certification (Leadership in Energy and Environmental Design Award) from the U.S. Green Building Council (USGBC). GOLD has sub-leased its leasehold rights to Golden Ventures Leasehold Real Estate Investment Trust (GVREIT) in April 2016.
- W Hotel Bangkok
Nestled in the inner city and adjacent to Sathorn Square office building, W Hotel is a 30-storey luxury haven with five-storey underground floor and boasts a total of 403 sleek, cozy and amenities-filled rooms with reclusive ambience. In addition to all modern comforts on offer, the upscale W Hotel is just a stone’s throw from BTS Skytrain mass transit system. Managed by the most renowned hospitality conglomerate Marriott International, the five-star hotel garners prestigious accolades, i.e. Best Design Hotel Worldwide 2015, but to name a few. GOLD entered into joint venture agreements, holding 20% of its shares, with foreign entities to develop the project.
- Modena by Fraser Bangkok
Modena by Fraser Bangkok is a 239-room, 14-story hotel with an underground floor, under the management of Fraser Hospitality. The hotel offers an at-home atmosphere and experience. The hotel building is located next to the FYI center and not far from the Queen Sirikit National Convention Center, and Khlong Toei Port, with access to many commercial areas via the subway line making this hotel convenient for business travelers.
- The Ascott Sathorn and Sky Villas
The Ascott Sathorn Bangkok is a contemporary serviced apartment building situated amid the central business district of Sathorn Road, near the Chong Nonsi BTS Skytrain Station. This 35-story building houses 177 serviced apartment units, managed by the Ascott Group Limited, a leading serviced residence and hotel operator from Singapore. The 21st to 35th floor of the building locates the “Sky Villas” the luxurious and exclusive residential high-rise apartments decorated by renowned interior designers.
- Mayfair Marriott Executive Apartment
Mayfair Marriott Executive Apartment is designed to be one of the most luxurious serviced apartment buildings in Bangkok, with a height of 25 stories. This development has also been granted a hotel operating license. GOLD sold its leasehold for the building to the Gold Property Fund (in which one-third of the shares belong to GOLD). The building houses 164 apartment units, with various sizes ranging from 1 to 3 bedrooms, and is managed by the Marriott International, Inc, a “global brand” hotel chain and leading hotel management company. The building is located in the middle of Soi Langsuan, not far from the BTS Skytrain Station and adjacent to Lumpini Park which is a famous park within the Bangkok central business district.
Additionally, GOLD is the property manager for the following projects:
- Park Ventures Ecoplex
Park Ventures Ecoplex is a Grade A office building for lease in the central business district, located at the corner of the Ploenchit and Wireless Roads, with direct passage from the BTS Ploenchit Station. The project was awarded the Platinum Level certification of LEED from the USGBC.
- Sathorn Square
Sathorn Square is a Grade A office building for lease, located at the corner of the Narathivas and Sathorn Roads, with direct passage from the BTS Chong Nonsi Station. The project was awarded the Gold Level certification of LEED from the USGBC.
- Samyan Mitrtown
GOLD has jointly developed a new mixed-use complex project called “SAMYAN MITRTOWN”, which it holds 49% of its share. The project is worth more than Baht 9,000 million at Samyan intersection connecting Phaya Thai Road and Rama IV Road, and connected to the walking tunnel from MTR Samyan Station. Samyan Mitrtown comprises of 1) rental office space 2) hotel and residential area and 3) retail space. The details about the project are as follows;
- Office area: Grade A 31-storey office building with a net lettable area of 48,000 square meters. The office area is equipped with turnstile system for security, LED lamps in the whole building for energy saving, VAV system (air conditioning system which can adjust the temperature in sub-areas), and column-free office space.
- Residential area: 516-unit condominium and 104-room hotel with key card security system in all rooms and public areas such as swimming pool. gym, library, etc.
- Retail area: Six-storey building with a net lettable area of 36,000 square meters. Developed with the concept of Learn Well, Live Well and Eat Well, the retail area hosts famous shops from the old Samyan and in-trend shops. There is a 24-hour zone to serve people at all time, and Mitrtown Hall, with 1,800 square meters, to host events, meetings, seminars, etc.