13 Jun 2022
Frasers Property Thailand Public Company Limited (“FPT”), Thailand’s leading integrated real estate platform, has made two investment deals in the logistics centres that are respectively located in Karawang, Makassar and Banjarmasin in Indonesia. The investments added over 150,000 square meters to the company’s overseas assets under management, resulting in the expansion of industrial property portfolio amounting to 3.25 million square meters.
The investment is divided into two transactions. The first one is an acquisition of additional 50% shares of the project in Karawang. Following this transaction, FPT is currently the major shareholder owning 75% of shares while the other 25% belongs to its long-standing strategic partner, Mitsui & Co., Ltd. As for the second investment, FPT has become the sole investor in the two warehouse projects in Makassar and Banjarmasin by buying out 66.7% of shares from the previous shareholder.
Mr. Thanapol Sirithanachai, Country CEO of Frasers Property (Thailand) Public Company Limited, said: “As a way to grow sustainably and cater to the evolving needs of our customers, we always look for opportunities to invest and expand FPT’s integrated portfolio of properties. This strategic investment will reinforce our leading position in the industry and generate a consistent stream of revenue from tenants which are multinational companies.”
Once the deal is completed, Frasers Property Industrial (Thailand) Company Limited (“FPIT”) will take on the role of entirely managing the projects, including tasks of sales and customer service. FPIT has been recognized as one of ASEAN's leading industrial real estate developers, whose expertise, experience and professionalism appeal to a wide range of multinational customers.
Mr. Sopon Racharaksa, Chief Executive Officer at Frasers Property Industrial (Thailand) Company Limited stated that: “Expanding our footprint in Indonesia marks a major milestone of the company. Our standards are elevated with our best-in-class industrial developments and seamless business solutions. Our experienced professionals along with the global prestige of Frasers Property can assure customers of our international quality standards. Currently, there are demands for warehouses in Indonesia among FPIT’s existing tenants which are leading international third-party logistics companies in Thailand. Likewise, customers based in Indonesia are expected to expand more rental space after the continuous boom of e-commerce business.”
The three modern projects in Karawang, Makassar and Banjarmasin appeal to logistics operators who require high efficiencies in storage and distribution.
Situated in the prime location connected to Jakarta and surrounded by first-rating industrial estates, FPT’s logistics centre in Karawang spans across 128,566 square meters of net leasable area. The factories and warehouses certified by international standards are well received by the tenants and users from various industries including automotive manufacturing, consumer products and technologies.
One of the key strengths of the Makassar warehouse is its location. Having over 1.5 million in population, Makassar, the capital city of South Sulawesi, is ranked the fifth most populous city in Indonesia. Owing to the close proximity of only 5 kilometres from the nearest airport, the warehouse becomes the highly sought-after logistics hub. Meanwhile, the warehouse in Banjarmasin enjoys a strategic location in an industrial area easily accessed via seaports and airports.
By working closely with customers, FPIT foresees rising demand from industrial and logistics businesses for industrial properties that meet international quality standards. The growing E-commerce market in Indonesia, as evidenced by 1300% growth in online retail sales from 2015 to 20201, is an attractive factor for customers to expand their businesses there. The Company is preparing to increase our investment in Indonesia in due course for sustainable growth.
1 Euromonitor Passport Database, March 29, 2021