Frasers Property Thailand: Pioneering Growth in Industrial Real Estate

Frasers Property (Thailand) Public Company Limited, commonly referred to as “FPT,” has ambitious plans for its industrial business, targeting a revenue of THB 4,000 million for FY 2025, which spans from October 1, 2024, to September 30, 2025. This figure marks an impressive year-on-year growth of 19%. Despite facing uncertainties in international trade, the company remains resolute, continuously adapting its strategies. Their approach revolves around three key pillars: Sustaining Value, Creating Value, and Unlocking Value. This framework is designed to harness FPT’s comprehensive suite of products and services across Thailand, Indonesia, and Vietnam.

The ASEAN Advantage

Leading the charge for FPT is Mr. Peerapat Srisukont, the Managing Director of the industrial division. He emphasizes the attractiveness of the ASEAN region for investors, even amidst challenges such as international trade tariffs impacting industrial and logistics sectors. Factors that contribute to this allure include the region’s geopolitical neutrality, a skilled manufacturing workforce, and robust domestic consumption trends. Mr. Peerapat notes that these attributes encourage entrepreneurs to consider relocating investments to mitigate associated risks.

FPT’s Extensive Portfolio

Currently, FPT boasts over 3.77 million square meters of industrial property nestled in Thailand, Indonesia, and Vietnam. With an extensive landbank and a diverse range of offerings, the company is strategically positioned to meet the evolving demand in the industrial sector. Mr. Peerapat articulates confidence in FPT’s capabilities to support various industry types, regardless of whether customers are shifting their manufacturing base to Thailand or expanding their ventures into other ASEAN countries.

A Value-Focused Strategy

FPT’s operational strategy under the theme “Strengthening Growth Through a Value-Focused Strategy in a Challenging Global Landscape” rests on three core components:

1. Sustaining Value

FPT showcases robust management practices, consistently driving stability amid fluctuating global markets. By utilizing flexible leasing arrangements and service strategies—such as adjustable short- and long-term contracts—the company tailors solutions to meet customer needs. The rising demand for factories means that FPT’s industrial properties can seamlessly transition between warehouse and factory uses, enhancing occupancy potential. Notably, customer satisfaction reached an impressive 91% last year, reflecting FPT’s commitment to service excellence.

2. Creating Value

The company offers a comprehensive range of service solutions designed to fulfill a variety of customer requirements. These services encompass everything from land procurement to construction of international-standard industrial buildings. Notable innovations include Ready-Built factories and warehouses, Built-to-Suit designs, and joint investments in forward-thinking projects like ARAYA – The Eastern Gateway in Thailand. This initiative aims to foster a pioneering ‘Industrial Tech Ecosystem’ to catalyze future industrial growth. Furthermore, FPT prioritizes sustainability by developing facilities that comply with internationally recognized green building standards, reinforcing the company’s commitment to environmental responsibility.

3. Unlocking Value

FPT employs a suite of innovative asset management strategies to maximize the potential of its properties. This includes divesting completed assets to its REIT, FTREIT, optimizing land usage, and enhancing property values through initiatives like installing solar rooftops. Collaborative ventures with real estate partners further bolster FPT’s market position, facilitating sustained growth. The company’s investment in technology—like smart meters to optimize energy consumption—also illustrates its commitment to operational efficiency and customer service. The ‘Smart & Sustainable Logistics Park’ initiative encapsulates FPT’s drive towards a forward-looking industrial landscape.

Strategic Vision for the Future

Mr. Peerapat asserts that Frasers Property Thailand holds a leadership position in industrial real estate development within ASEAN, primarily due to its well-integrated products and services in strategically significant industrial hubs across the region. This commitment translates into a solid competitive advantage, enhancing the company’s ability to address investor demands effectively. This aligns with the overarching strategy of FPT: “Secure Core, Embrace Future”—a mantra that drives the company toward sustainable, long-term growth.