Prospect Development (PD), a subsidiary of Mahanakorn Housing Public Company Limited, a developer and manager of warehouses and rental factories at the Bangkok Free Trade Zone (BFTZ), has reaffirmed its success by breaking records for new tenant contracts accumulated (excluding renewals) in the first nine months of 2024, reaching 200,000 sq.m. This achievement aligns with the ongoing influx of demand, indicating an overwhelming response to the BFTZ 4 project in Bang Pakong, pushing the occupancy rate for this project alone beyond 90%, despite only half of the total rental area of 200,000 sq.m. being completed. The company aims to leverage its expertise in developing industrial rental spaces for a new growth phase in the industrial estate business.

Prospect Development is recognized as a market leader in providing comprehensive warehouse and rental factory services in the Bangna-Trad area of Samut Prakan, managing over 500,000 sq.m. in the Free Zone, catering to the needs of both Thai and foreign entrepreneurs establishing long-term production bases. The company's growth trajectory this year is consistent with figures from the Board of Investment (BOI), which reported that foreign direct investment (FDI) in the first three quarters of 2024 has continued to expand, with 1,449 projects submitted for promotion, a 66% increase, and total investment amounting to 546.617 billion baht, up 38% compared to the same period last year.

Ms. Ratchanee Mahatdechkul, Managing Director of Prospect Development Co., Ltd., stated, "The performance of Prospect Development in 2024 has exceeded expectations in every aspect, including project expansion, signing new tenant contracts, and maintaining a strong base of existing tenants. The industrial rental space business has developed differently each year. This year, the Eastern Economic Corridor (EEC) has attracted special interest from foreign entrepreneurs, as evidenced by the highest investment promotion application value in the eastern region, reaffirming Thailand's status as a key investment destination. This has enabled the BFTZ 4 Bang Pakong project, which serves as a gateway to the EEC, to attract investors from emerging industries such as automotive parts, electronics, food, and beverages, who are quickly renting buildings, reflecting confidence in the quality of projects that have pioneered services in the Free Zone for a long time, along with business-friendly incentives and a location that meets their needs."

Overall, the forecast for the performance from January to September 2024 indicates that the company is expected to achieve an EBITDA profit exceeding 411.50 million baht, growing 30% from the same period last year, showcasing an average occupancy rate across all projects reaching a new high of 97%, up from 91% last year, while maintaining a renewal rate above 90%. This demonstrates the successful establishment of a rental project model in large industrial areas, developing various infrastructure systems and buildings, expanding projects to other potential locations, achieving success with nearly full bookings across all projects, and expecting to complete rental space development exceeding 1 million sq.m. by the end of this year.

At the same time, the company is preparing a new business plan in the industrial estate sector, strategically focusing on the Bangna-Trad area as a primary investment base, given the persistent demand in this area due to its convenience for logistics and distribution, connectivity to airports and deep-sea ports, proximity to industrial clusters, and being a hub for skilled labor.

"Moving forward, we aim to strengthen the foundation of the projects under development, upgrade buildings to align with new business trends, prepare to enhance service packages related to various licenses beyond those associated with factory establishment, and piece together the puzzle towards the industrial estate business. This new opportunity will help diversify our portfolio to cover both land development for rent and sale, ensuring stability for the company. The high occupancy rates nearing 100% across projects for the first time indicate a trend among existing tenants whose businesses are thriving and seeking to expand their rental space with us. Engaging in the industrial estate business can also provide options for purchasing land to create private operational spaces. Additionally, comprehensive and continuous support from the government, along with collaboration among stakeholders across all sectors, is a key driver for sustainable business operations for entrepreneurs, alongside advancing the Thai economy," Ms. Ratchanee added.

In the final quarter, Prospect Development will deliver a built-to-suit distribution center of over 88,000 sq.m. in the BFTZ 5 Wang Noi project to CP Extra Public Company Limited and will commence construction on the BFTZ 8 Theparak project and the BFTZ 9 Wang Noi project as planned.