TIP Holding: New strategic partner bolsters FTREIT’s quality portfolio expansion
- FTREIT invests THB 3.1 billion in Frasers Property Thailand and TIP Holding's assets. The investments amount to THB 1.5 billion and THB 1.6 billion respectively.
- FTREIT will have additional 127,000 sq.m. adding up to the total leasable area of 2.3 million sq.m., strengthening its position as Thailand’s leading industrial and logistics REIT.
- This strategic alliance with TIP Holding highlights FTREIT's expertise in selecting quality assets, enabling the company to generate income from a full occupancy rate of 100%.
BANGKOK, 3 JULY 2023
Frasers Property Industrial REIT Management (Thailand) Company Limited, or "FIRM", as the REIT Manager of FTREIT continues its growth plans with investments in high-potential assets of THB 3.1 billion in Frasers Property (Thailand) Public Company Limited and TIP Holding Co., Ltd., a leading warehouse developer in Samut Prakan province. This strengthens FTREIT's portfolio through high-quality assets with high occupancy rates, further cementing FTREIT’s status as the largest industrial and logistics REIT in Thailand with accumulated leasable area of nearly 2.3 million sq.m.
Thanarat Boonyakosol, Managing Director of FIRM, said: “FTREIT is on course to complete its investment plan. The additional 127,000 sq.m. incorporated into FTREIT’s portfolio will reinforces our position as Thailand's largest industrial and logistics REIT. The Trust is firmly focused on expanding its portfolio through the strategic acquisition and incorporation of a diverse range of high-quality assets with consistent high-occupancy rate that also meet international standards. In our latest investment, FTREIT has successfully secured a leasehold investment in the assets of TIP Holdings, further enriching its portfolio with high-quality assets.”
On 30 June 2023, FTREIT has recently invested more than THB 1.6 billion in a 30-year leasehold agreement for promising assets owned by TIP Holding Co., Ltd. The property comprises nine warehouse and factory buildings, encompassing a lease area exceeding 70,000 sq.m., with a fully occupied rate on 39-rai land. Notably, the deal includes a three-year revenue guarantee, which will enhance the stability of the trust's income. This establishes a foundation for future investment and growth opportunities.
The acquired assets from TIPS consist of recently developed factories and warehouses that demonstrate remarkable quality and feature modern premium design. Situated on Sukhumvit Road in Bang Pu Mai, Samut Prakan province, the assets are strategically located within Thailand's prime industrial and logistics zone, with convenient accessibility to Suvarnabhumi International Airport and Bangkok Port. This area experiences high and growing demand for warehouse and factory rentals. Furthermore, the key tenants from logistics sector are rapidly expanding, benefiting from Thailand economic expansion.
Regarding the investment in Frasers Property Thailand's assets, the total investment amounts to THB 1.5 billion. The assets comprise 25 warehouses and factories, covering a total area of 57,000 sq.m. These properties are strategically located in Ayutthaya, Chonburi, and Prachinburi provinces in Thailand. The transfer is expected to be completed in September 2023, with an anticipated increase in the average occupancy rate up to 90%.