Demand grows for space in warehouses: TPARK
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Ticon Logistics Park Co (TPARK), a major developer of logistics parks and warehouses for lease, said that in the first seven months of the year, its accumulated leased space totalled 746,284 square metres, up nearly 40 per cent from the end of 2012, becau
The company has nearly doubled its 2013 investment budget to Bt10 billion from Bt5.5 billion announced at the beginning of the year. The budget will be used for land purchase and new logistics-park development to serve the immediate requirements of industrial expansion.
General manager Patan Somburanasin said that in the first half, TPARK realised revenue of Bt250 million from leased space. As at the end of July, its warehouse space for lease had increased by 199,531sqm from the 546,753sqm it had at the end of last year. The number of customers increased to 86, occupying 746,284sqm. Of these, 41 per cent are logistics services providers, 23 per cent are from automotive industry, 10 per cent from electronics, 7 per cent from consumer products and 19 per cent from other industries.
During the first seven months, the rental-warehouse business continued to grow. TPARK welcomed new customers continuously, reflecting consistent expansion of industries, especially automotive, electronics, and import-export. As a result, demand for warehouses in strategic locations has also increased.
To capitalise on this opportunity, TPARK has launched new logistics-park projects in key areas such as Laem Chabang and Bang Phli. For example, TPARK Laem Chabang 2 was recently launched on 500 rai (80 hectares) in Chon Buri province to serve as a distribution hub and facilitate the increasing demand from the import-export sector in the Eastern region. With an investment of about Bt4.2 billion, TPARK plans to complete the project by 2015 with 230,000sqm of warehouse space for lease, Patan said.
In the current second half, the company is continuing to focus on increasing the availability of ready-built warehouses and acquiring ready-for-use land for development of built-to-suit warehouses.
“TPARK will continue to buy more land for developing new logistics parks,” Patan said.
“At present, TPARK has 4,692 rai of land, an increase of 656 rai compared with the end of 2012. We have already acquired about 600 rai in the Bang Phli area for developing TPARK Bang Phli 1-5. The company aims to increase our land bank to a total of 1,000 rai in the Bang Phli area by the end of the year.
“In addition, we have expanded our locations to the South with the purchase of the first 70-rai plot in Surat Thani province. We are confident that with this aggressively strategic move, TPARK will easily achieve the target of 60-per-cent growth by the end of 2013,” he said.
TPARK now has 28 logistics parks covering 4,692 rai and 746,284sqm of leased warehouses. With an additional 450,000sqm of ready-built warehouses already available for lease or under development, TPARK will have a total of 1,196,284sqm for lease by the end of the year.
