Frasers Property goes green with industrial property

The new model will allow its industrial property to be customised to the needs of its customers, with a focus on smarter automation technology and greener solutions, Sopon said.

Frasers Property will no longer invest in new "ready-built" industrial property in the coming years as it has sufficient stock to serve customers.

Built-to-function is a warehouse that is ready to use but can be optimised to meet special demands such as e-commerce, temperature control, or sustainability standards, Sopon said.

Built-to-suit is precisely built to meet the needs of business and construction will begin as soon as the facility is ordered. Construction will take up to 10 months.

Frasers Property has delivered 140,000 square metres of built-to-suit warehouse and factory space to customers so far this fiscal year.

"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 said.

By 2026, Frasers Property aims to increase its total assets under management to 4 million square metres, valued at 100 billion baht, he added.

Frasers Property believes Thailand's industrial real-estate market will continue to grow as a result of increased foreign direct investment due to demand for relocation outside of China and an expanding Thai economy.

Sopon said the company is expanding in Thailand, Vietnam, and Indonesia, and it has an average occupancy rate of 85%.

Its overseas investments in the industrial park and warehouse in Binh Doung, Vietnam, and the logistics centre in Karawang, Makassar, Banjarmasin, Indonesia, have seen consistent tenant growth and high occupancy rates, he said.

Sopon said the company plans to become a one-stop solutions provider as part of its five-year plan to capture new opportunities.

He explained that the solutions and services include three key components:

• introducing flexible logistics space, the small-scale city warehouse, which increases efficiency,
• continued development of factories and warehouses in strategic locations, and
• creating an industrial township and an industrial park by combining various asset classes such as factories, warehouses, commercial buildings, and residential property.

"This model adds value to the land bank and fosters a sustainable development model for the industrial business," Sopon said.

Frasers Property is also designing and developing green buildings that meet industrial standards and contribute to its 2050 net-zero carbon goal.

It intends to upgrade all of its existing assets to meet international green standards over the next three years. The cost is already factored into the company's annual budget of 10 billion baht.

The move will result in lower costs for tenants and energy savings while encouraging the development of a net-zero community, Sopon said.

He is confident that the company’s comprehensive portfolio of high-quality solutions and services, combined with its sustainable assets, is capable of meeting customer needs, increasing productivity, and improving overall experience.

Frasers Property Industrial (Thailand) is one of Frasers Property's three subsidiaries in Thailand. It currently provides a portfolio of over 3.5 million square metres of factories and warehouses in 50 locations for industrial and logistics businesses.