Prospect Development (PD), a subsidiary of Mahanakorn Housing Public Company Limited, which develops and manages warehouses and rental factories in the Bangkok Free Trade Zone (BFTZ), announced good news as 2023 comes to a close, having signed new lease agreements totaling over 200,000 sq.m. across 7 projects, surpassing the initial target of 150,000 sq.m. The projects that attracted overwhelming interest from tenants include BFTZ 3 on Bangna-Trad Road, Km. 19, and BFTZ 4 in Bang Pakong. Both projects boast significant strengths in the potential of the Free Zone, offering tax benefits for businesses engaged in import-export activities.

This positive response proves that the demand for warehouse and rental factory space in the Bangna-Trad area has never waned. Additionally, the EEC area continues to attract foreign investors to establish production bases in Thailand, with plans to aggressively expand new projects to meet the demand from clients across all industries.

Ms. Ratchanee Mahatdechkul, Managing Director of Prospect Development Co., Ltd., stated, "2023 has been a strong and rapidly growing year for Prospect Development. Our latest project, BFTZ 7 on Bangna-Trad Road, Km. 10, was not initially planned but has successfully filled 100% of its space with leading tenants in logistics and other businesses within just one year. The success of all our projects is built on the solid foundation of the company, including strategic locations, Free Zone areas, and comprehensive One Stop Service, combined with expertise in developing high-quality Ready Built A-grade buildings that were gradually constructed during the COVID period. After the country reopened, we quickly expanded projects and signed lease agreements to meet customer demands for immediate occupancy.

Currently, foreign investors tend to make quicker leasing decisions once they visit the actual project site and show interest, often signing contracts immediately. Delaying could mean missing out on available spaces in desired locations. The project that closed the most lease deals was BFTZ 3 on Bangna-Trad Road, Km. 19, with approximately 50,000 sq.m. leased to new clients, followed by BFTZ 4 in Bang Pakong and BFTZ 5 in Wang Noi. Negotiations for Built-to-Suit contracts are also ongoing with 2-3 clients.

Overall, throughout the year, PD has performed outstandingly, launching new projects in the same Bangna-Trad area while strengthening its expansion into strategic industrial and logistics points such as Bang Pakong and Wang Noi, reinforcing its position as a key player in the industrial real estate sector. The average occupancy rate across all projects exceeds 90%, and we have maintained a strong existing customer base, reflected in a renewal rate of 90% for 2023, continuing the upward trend since the post-COVID-19 period.

According to research from Krungsri Research, the ongoing recovery of the global and Thai economies will support the rebound of international trade. The warehouse business also benefits from the tourism sector, with expectations of 42 million foreign tourists visiting Thailand by 2025, stimulating consumer demand for goods, positively impacting the recovery of manufacturing, logistics, and domestic investment. Currently, the total leased area across all projects managed by PD is approximately 1,000,000 sq.m., with 2 out of 7 projects fully leased. A highlight is BFTZ 4 in Bang Pakong, with a leased area of 200,000 sq.m., the only project of the company located in the EEC, which began construction in 2022. Clients have been signing contracts for space even before the official launch, and the company aims to complete construction by next year. The majority of clients are in the electronics parts manufacturing, food, and logistics service sectors. The most popular building type within BFTZ 4 will be factory buildings, as it is located near industrial estates, leading suppliers in the production chain to rent nearby buildings.

"Our next goal is to accelerate the construction of ongoing projects while expanding new projects in high-potential locations that can create sustainable long-term growth to meet the demands of all industry sectors. The trend in the electric vehicle (EV) manufacturing business and related clean energy sectors is expected to attract more foreign operators to relocate their production bases, invigorating the Industrial Property market, especially from Chinese operators who are starting to expand into Thailand. This presents future opportunities for us. Another clear area is the electronics parts manufacturing business, which will benefit from the boom in the EV sector, along with automotive components and batteries. Additionally, the food industry is also keen to utilize space in BFTZ 1 on Bangna-Trad Road, Km. 23, due to its favorable transportation location and excellent infrastructure and amenities that support food businesses well," concluded Ms. Ratchanee.