Asia-Pacific real assets fund manager ESR has marked its entry into Thailand with an THB8bn (€211m) investment to develop two new logistics and industrial projects.
ESR said the Rojana Industrial Estate Laemchabang and the Asia Industrial Estate Suvarnabhumi projects are expected to be completed in 2025 and 2026, respectively.
ESR said it also expects to explore opportunities to invest in other strategic locations with “significant potential for logistics growth”, such as the Bangna-Trad, Eastern Economic Corridor Eastern Economic Corridor and Wang Noi areas, and subsequently expand to other parts of Thailand including Chiang Mai, Surat Thani and Khon Kaen.
Jai Mirpuri, head of Singapore development and Thailand at ESR, said that, over the next five years, ESR, via its development funds, intends to invest a further $1bn (€907m) into Thailand.
Mirpuri added: “We believe that the strategic locations, compelling offerings and sustainable features of our properties, backed by our local team of expertise, will attract tenants that are MNCs in the new economy and high-growth sectors.”
Jeffrey Shen and Stuart Gibson, ESR Group co-founders and co-CEOs, said: “ESR’s expansion into Thailand is in line with one of our three growth pillars to expand our New Economy business which includes logistics, data centres, life sciences and high-tech industrial sectors, especially in Southeast Asia, one of the fastest growing regions in the world.
“Rapid urbanisation, favourable demographics and rising incomes will continue to drive consumption and e-commerce in Thailand and this will generate strong demand for high-quality logistics spaces. Beyond capital investment, we see tremendous potential for ESR to create job opportunities in Thailand, share our best-in-class knowledge and expertise to uplift the skillsets of the local workforce, and add valuable infrastructure for the further development of Thailand’s economy.”
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