WHA Corp gears toward regional expansion with $1.2b

Cambodia Construction News Myanmar Vietnam
Jareeporn Jarukornsakul, a newly-appointed CEO of WHA Corp.
Jareeporn Jarukornsakul, a newly-appointed CEO of WHA Corp.

WHA Corporation Tuesday announced that it would expand its footprint in ASEAN countries over the next five years, and would invest 43 billion baht ($1.2 billion) to xpand its logistics and warehouse businesses at home and in Southeast Asia.

Due to its aggressive investment, the company has forecast that its revenues will  rise from 13.1 billion baht in 2015 to over 21 billion baht by 2020.

Following its acquisition and merger with Hemaraj Land and Development Pcl last year, WHA Corp has become the integrated operator in four core businesses which are logistics, industrial estate development, utilities and power plant, and digital platform.

Off the proposed investment of 43 billion baht over the next five years, it will spend 14 billion baht on developing logistics business, including warehouses and built-to-suit factories, in the Eastern Economic Corridor (EEC) in Chachoengsao, Chonburi and Rayong provinces as well as expanding into overseas including Indonesia, Vietnam, Myanmar, Cambodia and Malaysia.

The group currently has total leasing space of 2.2 million square metres and it targets to have 3.3 million square metres in Thailand and 300,000 square metres in overseas within five years.

“The WHA Group is now poised to support and enhance the EEC initiative,”WHA’s chief executive officer Jareeporn Jarukornsakul said. “Through Hemaraj, we play an instrumental role in the development of the automotive, electronics and petrochemical clusters, and we are now committed to be an active partner in the development of future industries such as digital, aviation, robotics, biofuel, biochemicals and health.”

Another 14 billion baht will go toward developing two new industrial estates in Thailand’s Eastern Seaboard and the other two in Vietnam, she said.

For utilities and power business, it plans to use 11 billion baht to have total electricity generating capacity of 538 megawatts. Under this budget, it will also co-invest in a waste-to-energy power plant and look for opportunities to invest in power business abroad especially in Vietnam.

The remaining 4 billion baht will be used to set up three to five data centres. It will launch the first two centres by the end of this year.

The CEO said that it has no plan to raise the capital at the moment. Instead, it will sell the asset into the real estate investment trust worth around 12 billion baht, up from its earlier plan to sell around 4 billion baht. It will also issue debentures worth around 7 billion baht until next year.

She added that its debt-to-equity ratio might be around 1.8-1.9 times this year end, but it will lower it to 1 in the next five years.

Source: http://www.dealstreetasia.com/stories/thailand-wha-corp-gears-toward-regional-expansion-1-2b-50074/