ESR, one of Asia’s largest real estate investment trusts (REITs), is set to expand into Thailand with a $313 million investment, marking its entry into the Thai market with the acquisition of three logistics properties located in Bangkok and Samut Prakan provinces.
The announcement was made while breaking ground on one of the projects. This milestone is seen as a significant vote of confidence in Thailand’s burgeoning logistics and real estate sectors, as the country continues to thrive as a major trade hub in Southeast Asia.
ESR Adds Growing Thai Market
ESR, a leading real estate investment trust (REIT) in Asia, has announced plans to expand into Thailand with a $313 million investment. The company will acquire a portfolio of three logistics properties in Bangkok and Samut Prakan provinces.
The expansion into Thailand is part of ESR’s strategy to grow its presence in key markets in Asia. The company already has a significant portfolio of logistics properties in China, Japan, and Singapore. The investment in Thailand is a vote of confidence in the country’s economy and its growing logistics and real estate sectors. Thailand is a major trade hub in Southeast Asia, and its logistics sector is expected to grow rapidly in the coming years.
The properties are all well-located and have good access to major transportation networks. They are also fully leased to blue-chip tenants, which provides ESR with a stable income stream.
ESR’s investment is expected to create jobs and boost economic activity in Thailand. The company is also committed to working with local partners and suppliers.
“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. Our strong focus on ESG and track record in developing innovative and sustainable properties will also support Thailand’s transition to a low-carbon economy.” Jeffrey Shen and Stuart Gibson, ESR Group Co-founders and Co-CEOs
The expansion into Thailand is a major milestone for ESR. It is a sign of the company’s confidence in the future of the Thai economy and its logistics sector.
“As the second largest economy in Southeast Asia, Thailand is an important component of ESR’s strategy for this important region. The government has launched Thailand 4.0 to transform the country into a value-based economy, which includes key sectors such as new-generation e-commerce, logistics, automotive and digital industries. Over the next 5 years, ESR (via its development funds) intends to invest a further US$ 1 billion into Thailand, in line with the country’s projected GDP growth at 3.28% CAGR from 2022 to 2027. 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.” Jai Mirpuri, Head, Thailand, ESR Group
Benefits of ESR’s Expansion into Thailand
The expansion of ESR into Thailand is expected to bring a number of benefits to the country, including:
Increased investment: ESR’s investment is a major vote of confidence in the Thai economy. It is expected to attract more investment from other foreign companies.
Job creation: The construction and operation of ESR’s properties will create jobs in Thailand. The company is also committed to working with local partners and suppliers, which will create even more jobs.
Economic growth: ESR’s investment is expected to boost economic growth in Thailand. The company’s properties will provide much-needed storage and distribution space for businesses in the country. This will help to reduce costs and improve efficiency, which will lead to increased economic activity.
Opportunities for Investors
The expansion of ESR into Thailand also presents opportunities for investors. The company’s properties are well-located and have good access to major transportation networks. They are also fully leased to blue-chip tenants, which provides investors with a stable income stream. Beyond the specific properties, ESR is a leading real estate investment trust in Asia. The company has a strong track record of growth and profitability. This means that it underlines Thailand’s increasing attractiveness as a real estate investment destination with the potential for high returns. The expansion of ESR into Thailand is a major development that is expected to benefit the country and investors in the country’s real estate market.
In Conclusion
ESR, one of Asia’s largest real estate investment trusts (REITs), has announced a $313 million expansion into Thailand by acquiring three logistics properties in Bangkok and Samut Prakan provinces. This expansion marks ESR’s entry into the Thai market, signalling their confidence in Thailand’s thriving logistics and real estate sectors. The company, which already has significant holdings in China, Japan, and Singapore, sees this move as a strategic one to increase its presence in key Asian markets. This investment is expected to stimulate job growth and economic activity in Thailand, as well as provide a stable income stream for ESR due to the properties being fully leased to blue-chip tenants.
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