Frasers Property (Thailand) Public Company Limited (FPT), a leading provider of integrated real estate platform, announced the Board of Directors (BOD) approved divestments of industrial assets worth THB 6,000 million in strategic locations to Frasers Property Thailand Industrial Freehold & Leasehold REIT (FTREIT), the largest industrial REIT in Thailand.
The capital recycling exercise will allow the company to maximize return to shareholders and convert assets to capital for future development in built-to-suit projects and investments for future growth.
The divestments of assets comprise 35 factories and 30 warehouses with total area of 284,609 sqm. The properties are located in strategic locations of the industrial and logistics industry in Samutprakarn, Pathumthani, Ayutthaya, and EEC cluster. The transaction will be conducted in four batches with an initial batch of around THB3,000 million to be transferred this FY2020. FPT continues to maintain the leadership position in the industrial property business with total assets under management (AUM) of more than 3 million sqm. and portfolio occupancy of 80% as of March 2020.
Mr. Sopon Racharasksa, President of Frasers Property Thailand stated, “As the main sponsor of FTREIT, we continue to monetize our industrial assets in prime locations for industrial and logistics industries to FTREIT to support its growth. These additional assets will benefit to its portfolio and provide greater diversification for sustainable return to FTREIT’s unitholders. The pipeline of industrial property business remains robust, thanks to the growing demand for manufacturing relocation from China due to the China-US Trade War conflict and COVID-19 situation. In addition, we are targeting every year to secure more built-to-suit (BTS) deals. BTS will strategically add back quality sqm portfolio to sustain long term sustainability of the platform”.
FPT recently closed the deal to develop state of the art smart distribution center for F&N in Ayutthaya and is expected to announce more good news in 2H20. The Company sees growing demand from smart electronics, automotive, medical and pharmaceutical and e-commerce related sectors.
“Proceeds from sales of assets to FTREIT will ensure source of capital for future CAPEX and investments of the Company and profitability growth for the shareholders” Mr. Sopon added.