Bangkok--4 Mar--PRDD
TICON Group, Thailand's leading developer of high-quality rental factories and warehouses, announced its business performance in 2015 by breaking the record of factory and warehouse for lease with 38% growth and earning revenue at 4,854 million baht. The company has budgeted 4,000 million baht for the investment in 2016. Aiming to expand its space for lease of 280,000 square meters to serve AEC market and Chinese manufacturers that will invest more in Thailand. Additionally, the company will increase proportion of investment in Indonesia and Vietnam.
Mr.Virapan Pulges, Managing Director of TICON Industrial Connection Public Company Limited or TICON discloses TICON group's business performance in 2015 that "2015 was a record year for TICON Group with factory and warehouse spaces for lease increased by 383,825 square meters or 38% growth compared with 278,397 square meters of total leased space in 2014. TICON's factory leased spaces totaled 69,275 square meters and TPARK's warehouse leased space totaled 288,402 square meters while SLP's warehouse leased space in Indonesia totaled 26,148 square meters.TICON group has total revenue of 4,854 million baht and earned 770 million baht of net profit from rental factories and warehouses, including asset selling to TREIT, etc."
"Despite the company had been affected from external factor last year, namely, the slowing down economy in Thailand and over the world coupled with the political situation, which affected the investor's investment decision, TICON Group's business continued to grow significantly reflecting the company's key strategy focusing on "availabilities" which includes developing high quality buildings in strategic locations. Moreover, TICON has received interest from Chinese manufacturers in addition to the usual Japanese manufacturers last year, mostly in alternative energy generation such as solar panel production and assembly," said Mr.Virapan.
Concerning TICON Group's business direction in 2016, Mr.Virapan said "We see a great opportunity from AEC opening combined with lower cost of construction materials, which creates good opportunity for our investment expansion this year. The company still performs by following 5 years investment plan (2015-2019) with a 50,000 million baht budget to step into the leader in its business in ASEAN. In 2016, TICON's goal is to add 280,000 square meters of leasable factory and warehouse spaces and budgeting 4,000 million Baht for investment to strengthen its business capability nationally and internationally. With 500 million baht for TICON and 3,000 million baht for TPARK, the rest of 500 million baht will be used for investment in Indonesia. For the progress of project in Indonesia, the second phase is now being developed with a 51,000 square meters space for lease. Apart from Indonesia, TICON sees the growth of industrial expansion in Vietnam, which is another country with long-term growth potential."
Mr. Patan Somburanasin, Managing Director of TICON Logistics Park Company Limited (TPARK) added, "For TPARK's marketing strategy, the company still emphasizes on expanding the warehouse spaces in the high potential locations for growth which still remain near Bangkok metropolitan areas, especially Bangplee and Wangnoi locations. TPARK has available land in Bangplee of 880 Rais and Wangnoi of 877 Rais. These two areas are ideal distribution hubs to serve expansion of major industries such as consumer products, modern trade, e-commerce, and logistics service providers, etc. In the past year, TPARK has developed built to suit projects for many well-recognized MNC (Multi-National Corporation) customers confirming the trust in the high quality of TPARK warehouses in the strategic locations such as Nestle, Makro, L'Oreal, and Linfox. Moreover, there is also an increasing demand from e-commerce customers like Lazada. Apart from Konkhaen, TPARK has launched the Lamphun project in the North, which covers total land area of 139 Rais with potential warehouse space of 96,000 square meters. The project receives excellent response from customers with the first customer of 2,291 square meters."
TPARK continuously emphasizes on the construction innovation and value-engineering in order to add value for our customers. The company drives in the quality and proficiency in warehouse designing to satisfy the numerous need of the customers, for example, Dangerous Goods warehouses with quality satified by the Department of Industrial Works,Temperature-controlled warehouses, also LEED (Leadership in Energy and Environmental Design) certified warehouses or green warehouses which TICON Group is considered as the first pioneer in Thailand in developing the factory and warehouse using LEED specification in order to build the factories and warehouses that are able to reduce energy usage in the building with the least effect on environmental eco-system.
TICON Group continuously retains the leadership as Thailand's number one in the factory and serviced rental warehouse business with total land area and space of leased warehouse of 51 projects covering a total space under management of 2,355,586 square meters. These projects include TICON ready-built factory projects with 1,118,705 square meters of rental space, plus TPARK ready built and built to suit warehouses spanning 1,236,881 square meters.