Frasers Property is setting a new standard in the industrial real estate sector, unveiling an innovative model aimed at customizing industrial properties to meet specific client needs. According to Sopon Racharaksa, the company’s vision emphasizes the integration of smarter automation technologies and greener solutions, which are becoming increasingly essential in today’s environmentally-conscious market.
Significantly, Frasers Property has announced it will no longer invest in new “ready-built” industrial properties. This decision stems from their belief that they already possess ample stock to fulfill customer requirements. Instead, the company is pivoting focus towards creating more tailored solutions for their clients.
One of the primary offerings is the “built-to-function” warehouse model. This category includes buildings that are not just ready for immediate use but can also be optimized to meet unique demands—ranging from e-commerce operations to temperature-controlled environments and sustainability standards. This flexibility is particularly appealing to companies that prioritize efficiency and environmental responsibility.
On the other hand, the “built-to-suit” model takes customization a step further. These warehouses are designed and constructed specifically for individual clients, ensuring that every aspect of the facility meets their operational needs. The construction of such buildings begins promptly after an order is placed, with completion timelines typically spanning around 10 months, allowing businesses to get up and running quickly.
So far in this fiscal year, Frasers Property has delivered an impressive 140,000 square meters of built-to-suit warehouse and factory space to its clients. Sopon highlighted that the company aims to expand its portfolio further, with a commitment to deliver an additional 150,000 square meters by the year’s end. This ambitious plan includes new park developments backed by a substantial investment budget of 10 billion baht, signifying Frasers Property’s confidence in the evolving industrial landscape.
“Overall this year, [Frasers Property] is committed to expand 150,000 square metres of warehouse and factory space by the end of this year, including new park development with an investment budget of 10 billion baht,” Sopon stated.
Looking ahead, Frasers Property has set a strategic goal of increasing its total assets under management to 4 million square meters, aimed to reach a valuation of 100 billion baht by 2026. This ambitious target reflects their optimism towards the growth prospects of Thailand’s industrial real estate market, driven largely by an influx of foreign direct investment. The demand for firms relocating their operations outside of China, combined with the strengthening Thai economy, underscores this potential.
Sopon mentioned that the company is actively expanding its footprint not only within Thailand but also in Vietnam and Indonesia, where they currently enjoy an average occupancy rate of 85%. This solid performance suggests robust demand and a resilient market outlook across the Southeast Asian region.
Frasers Property has also made strides in its overseas ventures, with significant investments in industrial parks and warehouses in locations such as Binh Doung, Vietnam and logistics centers in Karawang and Makassar, Indonesia. These investments have consistently witnessed tenant growth and maintained high occupancy rates, further establishing Frasers Property as a major player in the industrial landscape.
As the company continues to innovate and adapt to the ever-changing demands of the industrial sector, it remains committed to delivering state-of-the-art facilities that cater to the specific needs of its diverse clientele.