Thai developer Origin Property diversifies into logistics and warehouses for growth
With a dramatic rise in e-commerce business, SET-listed developer Origin Property Plc has diversified into logistics and warehouses through a joint venture with JWD InfoLogistics Plc, planning to develop 200,000 square metres per year.
Peerapong Jaroon-ek, chief executive of Origin, said the company would support the joint venture with potential land plots, development of logistics and warehouse facilities, and its partnership with Japanese and South Korean investors.
“Some of our 100 residential sites, both condo and low-rise projects, in Greater Bangkok can become self-storage facilities to tap e-commerce merchants living nearby. The services will start by the end of the year,” he said.
Charvanin Bunditkitsada, chief executive of JWD, said the joint venture would help JWD expand the built-to-suit warehouse business and increase the number of self-storage facilities in housing projects.
Earlier this year Origin and JWD set up a joint venture, Origin JWD Industrial Asset Co, which was last month renamed Alpha Industrial Solutions Co, with a registered capital of 1 million baht held 50:50 by the two partners.
At present, Alpha is developing the first project on a 24-rai plot on Bang Na-Trat Km 22.
It will comprise a 5,000 sq m multi-temperature cold storage facility with 4,872 pallets and a 15,000 sq m temperature-controlled warehouse with 4,512 pallets.
With a total investment of over 400 million baht, the first project will generate revenue in the third quarter of 2022 and account for 5-10% of Origin’s total revenue.
“We are eyeing a second project in Wang Noi and Pathum Thani to tap e-commerce businesses in major cities,” said Mr Charvanin.
Alpha plans to develop 200,000 sq m of logistics and warehouses per year, of which 60% will be new development and 40% acquisitions of existing spaces.
It will sell the properties into a real estate investment trust by 2023.
In 2025, it plans an initial public offering and listing on the stock market with market capital of around 12 billion baht.
By that time, it expects to have a total logistics and warehouse area of one million sq m.
Alpha’s business will cover industrial properties including logistics centres, warehouses, industrial parks, industrial estates and order fulfilment.
It will also have self-storage facilities in cities and a micro-fulfilment centre.
Targeted customers will include those in e-commerce, cold storage, chemical and dangerous goods, automotive and electric vehicles, city self-storage and data centres.