Prospect is leading the business group for leasing and services, moving forward with the development of factory and warehouse buildings totaling over 150,000 sq.m., while accelerating business expansion to create continuous growth rates.

Prospect Development, a subsidiary of Muang Koon Housing Public Company Limited or MK, indicates that COVID-19 has not significantly impacted the leasing and services business. The project "Bangkok Free Trade Zone" has already generated 101 million baht in revenue in Q1/2020, as foreign investors are looking to use Thailand as a production base, driving the growth of the factory and warehouse leasing business. This presents an opportunity in a rising market, expanding leased factory and warehouse space by over 200 rai, totaling 150,000 square meters.

Ms. Ratchanee Mahatdechakul, Managing Director of Prospect Development Co., Ltd. - PD, a subsidiary of Muang Koon Housing Public Company Limited or MK, the developer and manager of the Bangkok Free Trade Zone (BFTZ), revealed that the factory and warehouse leasing business under the Bangkok Free Trade Zone project has been less affected by the COVID-19 crisis than initially anticipated. Conversely, there has been an increase in foreign clients, particularly from China, seeking to lease factory and warehouse space, especially since the trade war between the United States and China, which has prompted China to look for new production sources and distribution bases. Thus, this is a good opportunity for the leasing business.

“Since developing the BFTZ project in 2016, Prospect currently has approximately 220,000 square meters of factory and warehouse space, with a growth rate of up to 160%. If fully developed, Prospect will have a total area of 300,000 square meters by the first quarter of 2021, with 101 million baht in revenue generated in the first quarter of 2020.”


Ms. Ratchanee Mahatdechakul, Managing Director of Prospect Development Co., Ltd. - PD

The main factors supporting the continuous growth of BFTZ are due to the project's distinctiveness, as it includes both Free Zone and General Zone areas, providing space for both warehouse and factory leasing, with a comprehensive security system on a large area of over 1,000 rai, located in the largest purple zone in the area. It can be accessed via two routes: Bangna-Trad Road Km. 23 and Bangna-Trad Road Km. 19, with convenient transportation, being only 23 kilometers from Klongtoey Port, 17 kilometers from Suvarnabhumi Airport, and 90 kilometers from Laem Chabang Port. Additionally, it is only 50 kilometers from the Eastern Economic Corridor (EEC) development area, with additional services provided for both Thai and foreign operators, such as Consulting Services for business permit applications in Thailand, business preparation steps, documentation, and advice on obtaining licenses for operating in the Free Zone (Gor Sor 185), among others. The project also has complete public utilities, including wastewater treatment systems, flood prevention systems, security systems, and cleanliness management within the project, as well as zones for shops, restaurants, and customs services for tenants.

“Given the continuous growth trend, Prospect Development is moving forward to expand its factory and warehouse leasing business with two new locations at Km. 19 and the Theparak area, totaling 150,000 square meters. Construction of these two leasing facilities will begin in late 2020. If fully developed, the company will have over 450,000 square meters of factory and warehouse space. Additionally, the company plans to establish a real estate investment trust for property investment in the second half of this year,” said Ms. Ratchanee.

The Bangkok Free Trade Zone project is located at Bangna-Trad Km. 23 and is a factory and warehouse area that has been authorized as a Free Zone, accommodating the needs of clients seeking to lease space, with options for both Free Zone and General Zone. Within the Bangkok Free Trade Zone, we have two types of rental buildings: 1) Warehouse buildings and 2) Factory buildings. Since the project's location is in a purple zone, operators can build factories in this area without worrying about obtaining permits. The total area of the Bangkok Free Trade Zone project is 1,000 rai, with 700 rai designated for leasing or Leasable Area, while the remaining 300 rai is for public utilities, such as public roads, wastewater treatment plants, and security within the project.