Prospect Development (PD), a subsidiary of Munkong Housing Public Company Limited, which develops and manages warehouses and rental factories in the Bangkok Free Trade Zone (BFTZ), has announced its business plan for 2024, emphasizing the concept of ‘Better Prospect, Better Industrial Ecosystem’. This initiative aims to drive sustainable growth in the Thai industrial sector after achieving record-high performance last year, generating total revenue of over 941 million baht, a 66% increase from 2022, and a net profit of 242 million baht. The company is benefiting from a surge in demand for warehouse and factory rentals, with an annual investment budget of 2 billion baht, following a 5-year strategic plan to expand rental space to 2 million square meters. PD is set to expand with 2 new projects in strong locations: Theparak in Samut Prakan and Wang Noi in Ayutthaya, positioning itself as a frontline supporter for foreign investors establishing production bases, reinforcing its strength as a leading provider of warehouses and factories in Thailand's Free Zone.

Ms. Ratchanee Mahatdechkul, Managing Director of Prospect Development Co., Ltd., the developer and manager of the ‘Bangkok Free Trade Zone’, stated, “Sustainability in business has always been a priority for PD. Since 15 years ago, when the company recognized the potential of the Free Zone area, we laid the foundation for warehouse and factory rental projects in BFTZ 1 Bangna-Trad Km. 23, which has now expanded to 9 quality projects. Our past performance is proof that we are a genuine leader in the industry, ready to continue stable and sustainable growth. For the next step, we aim to maintain an average occupancy rate across all projects above 90%, focusing on ready-built buildings and ready-built-to-suit models, diversifying the tenant industries to ensure no single industry exceeds 20% of the total project. When the right opportunities arise, we will promptly expand projects in key strategic locations in Thailand.”

Overall, in 2023, the company successfully exceeded its targets, with new clients signing leases for over 220,000 square meters in three prime locations in the industrial and logistics sectors: Bangna-Trad, Bang Pakong, and Wang Noi. The latest project, BFTZ 7 Bangna-Trad Km. 10, has attracted 100% occupancy from tenants, and there are opportunities from the EEC with the BFTZ 4 Bang Pakong project, which has a rental area of 200,000 square meters, expected to be fully completed by 2024.

Key highlights in the expanding industry include renewable energy, automotive parts, and food and beverages, aligning with the main tenant base in the Bangkok Free Trade Zone. Additionally, foreign direct investment in 2023 reached its highest level in 5 years, with the BOI analyzing that 2024 will see large projects continuing to invest, supported by government economic stimulus measures, attracting foreign investment, and utilizing benefits from new FTAs (Free Trade Areas). The strong tenant nationalities from last year included China and India, reflecting the growth trend in EVs, leading to expectations that foreign investors will flock to use Thailand as a production base in the future.

2024 Plans Unveiled: Expanding with 2 New Projects, Aiming to Increase Rental Space to 2 Million Square Meters

The potential from the existing project areas with high demand in Bangna-Trad and Wang Noi, along with the advantages of the Free Zone, which encompasses over 500,000 square meters across all projects, attracts new tenants and maintains a strong customer base, achieving a contract renewal rate of 90% last year. The key plans for 2024 include expanding into 2 new projects: BFTZ 8 Theparak with a rental area of 35,000 square meters and BFTZ 9 Wang Noi with a rental area of 35,000 square meters, featuring ready-built and built-to-suit buildings. The target for new tenants in 2024 is set at 200,000 square meters, accelerating the development of warehouse and factory rental space to a total of 2 million square meters as planned.

Currently, PD holds over 80% of the ready-built factory space, resulting in a relatively low turnover rate. Additionally, the company will begin gradually delivering buildings to clients in the new projects.

Promoting Better Prospect, Better Industrial Ecosystem for Sustainable Growth Across All Sectors

Under the More Than Just Space strategy, which aims to be more than just rental space, PD enhances its service development concept to cover all dimensions, including tenants, stakeholders, and investors. In addition to providing comprehensive One Stop Service for customer convenience, the company has initiated a Business Matching project to connect tenant businesses within the project, promoting the exchange of views, collaboration, and joint business development, as well as partnering with government agencies like the Customs Department to provide information on benefits in the Free Zone to operators, serving as a frontline support for foreign investors.

By the end of this year, PD plans to sell assets into the PROSPECT REIT, for which the company is the main sponsor, with a rental area of approximately 130,000 square meters, valued at over 3 billion baht. This will increase the asset value of PROSPECT REIT to nearly 10 billion baht, instilling confidence in investors and unit holders of PROSPECT REIT regarding its potential for long-term returns.