Prospect Development (PD), part of Munkong Kheha Group Public Company Limited, a developer and manager of warehouses and rental factories for the Bangkok Free Trade Zone (BFTZ), has announced its strategic plan for 2025, titled ‘Transformative Growth Mission... a mission to revolutionize for sustainable long-term growth’. The company is set to lead the Munkong Kheha empire towards more stable growth by investing over 6.5 billion baht to develop the Bang Pakong Industrial Estate, covering an area of 1,000 rai in the EEC potential zone, aiming to create consistent cash flow and strengthen revenue from both rentals and land sales in the estate. Additionally, it plans to sell assets into the PROSPECT REIT, valued at no more than 3.35 billion baht, expected to be completed by the second quarter of 2025.

Revamping Munkong Group's Strategy: Prospect Development as the Key Revenue Driver

Following a major restructuring of the MK Group with a new operational direction, the focus has shifted to the industrial real estate sector as the core business. Last year, PD accounted for 47% of MK Group's total revenue and generated 54% of its gross profit.

Mr. Warasith Pokachai Phat, CEO of Munkong Kheha Group Public Company Limited, stated, “Prospect Development is a crucial flagship in driving the regular income of the MK Group, especially during a challenging period for the residential real estate market. The restructuring is laying a new foundation for MK Group to achieve stable and sustainable growth in the long term, focusing on business sectors that can leverage potential amid ever-changing competition. PD's performance demonstrates its readiness to be a cornerstone in creating a strong New S-Curve for business, maintaining its leadership in the warehouse and rental factory sector within Thailand's Free Zone, and recently expanding into the new industrial estate business.”

PD's Strategy: E-E-C for Comprehensive Industrial Estate Development

This expansion reinforces that Prospect Development is not only skilled in developing rental industrial zones but can also develop various industrial areas. It aims to broaden the success of the Bangkok Free Trade Zone (BFTZ), which has gained the trust of leading industrial operators, elevating it to develop an industrial estate that meets the investment needs of the country's target industries.

Ms. Ratchanee Mahatdechkul, Managing Director of Prospect Development Co., Ltd., which develops and manages the ‘Bangkok Free Trade Zone’ project, revealed, “The development of the Bang Pakong Industrial Estate marks a significant step for PD in enhancing potential and supporting national economic and investment strategies, particularly in the EEC area, which is becoming a major magnet for attracting investors from around the world. We will collaborate with the Industrial Estate Authority of Thailand (IEAT) to support seven target industry groups, including agriculture and food processing, automotive, electronic components, light industry, and digital industries such as data centers and cloud technology.”

The Bang Pakong Industrial Estate is located in Klong Tamru, Mueang Chonburi District, Chonburi Province, and will be developed as an Eco-Industrial Estate to support industrial growth while balancing social development and the well-being of the community, equipped with modern infrastructure and comprehensive services. Currently, it is in the process of preparing an EIA report and is expected to commence operations around 2027, with a target land sales goal of approximately 680 rai in the first year.

“In 2024, the eastern region is projected to have the highest investment value at 573,066 million baht, and in the first quarter of 2025, the Department of Business Development, Ministry of Commerce reported over 24,234 million baht in foreign investment in the EEC area, accounting for 52% of total investments. In our area at BFTZ 4 Bang Pakong, which is located near the new industrial estate, we have a 100% occupancy rate, even though some areas are still under development. This indicates a clear demand in this strategic location. Despite global economic uncertainties due to trade wars and U.S. import tax policies, most investors view the decision to relocate production as a time-consuming process that requires ongoing monitoring. Thailand still holds strategic advantages in infrastructure, logistics, and being a manufacturing hub in the ASEAN region. However, seeking new opportunities through FTAs and government investment promotion policies is essential to stimulate the industrial sector's progress,” Ms. Ratchanee added.

Additionally, PD has established a growth strategy based on the 3 Pillars of ‘E-E-C’, which include:

  • ENLARGE from Core Strengths: Expanding capabilities from the foundation of expertise and organizational strengths into all business activities.
  • EVOLVE with Flexibility and Adaptability: Developing flexibly and being ready to adapt to meet all situations.
  • COLLABORATE for Greater Impacts: Strengthening through collaboration with partners in all dimensions.

For the fiscal year 2024, PD's total revenue is projected to be 898 million baht, with rental and service income at 485 million baht, representing a 21% growth in rental income from the previous year. Therefore, it is accelerating the development of warehouse and rental factory projects in the pipeline, including BFTZ 4 Bang Pakong and BFTZ 6 Bangna-Trad Km. 19, aiming to maintain an average occupancy rate of over 90% across all projects in 2025 and sign new lease contracts for over 200,000 square meters.

Strengthening Revenue by Continuously Selling Assets into PROSPECT REIT

As the main sponsor and asset manager of the real estate investment trust and property lease rights, Prospect Logistics and Industrial, or PROSPECT REIT, the company is preparing to sell some assets from BFTZ 1 Bangna-Trad Km. 23, BFTZ 2 Theparak, and BFTZ 3 Bangna-Trad Km. 19 into PROSPECT REIT, with a total rental area of 221,678 square meters.

Ms. Oranong Chaitong, CEO of Prospect REIT Management Co., Ltd., stated, “PROSPECT REIT is preparing for its second capital increase and will invest further in assets from PD valued at no more than 3.35 billion baht, with the subscription period for additional trust units set from May 19 to 23, 2025. Meanwhile, the trust manager is studying the feasibility of several other projects developed by PD, which, along with the strength of asset quality and the expertise of the main sponsor, supports high contract renewal and rental rates. PROSPECT REIT continues to focus on effective management, risk diversification, and thoroughness in all aspects, while consistently delivering good returns to unit holders, with an expectation to expand the total asset value of the fund to reach 10 billion baht by 2026.”

All these operational plans reflect Prospect Development's readiness to be the ‘flagship’ of Munkong Kheha Group and a crucial cog in driving the Thai industrial sector into the future.