ESR enters Thailand market with two industrial park projects

The ESR Group has announced its expansion in Thailand with the development of two industrial and logistics parks that will cost THB 8 billion ($235 million). The group's first project, scheduled for completion by the end of 2025, is located at Rojana Industrial Estate Laemchabang on the country's east coast and has a total area of 93,000 square meters (1 million square feet). The second project, to be completed by the end of 2026, is located in Asia Industrial Estate Suvarnabhumi next to Bangkok's main international airport and will have an area of 253,500 square meters.

"ESR's expansion in Thailand is in line with one of our three strategic growth objectives - to develop our New Economy business, which includes logistics, data centers, life sciences and high-tech industrial sectors, particularly in Southeast Asia, one of the fastest growing regions in the world," said ESR's joint CEOs Jeffrey Shen and Stuart Gibson.

ESR plans to invest another $1 billion in Thailand over the next five years through its development funds, in line with the country's projected average annual GDP growth rate of 3.3 percent through 2027. The park at Rojana Industrial Estate Laemchabang covers an area of 160,000 square meters and is located a 15-minute drive from Laem Chabang Port in Chonburi province, which is one of three provinces in the Eastern Economic Corridor, a special economic zone offering tax incentives for projects located there.

The park at Asia Industrial Estate Suvarnabhumi covers an area of 363,500 square meters and is located close to accessible routes to downtown Bangkok, making it ideal for distributing goods by air and moving temperature goods, according to ESR. Thailand is an important part of the region's development strategy for the developer, according to head of development in Singapore and Thailand Jai Mirpuri.

"We believe that the strategic location, attractive offerings and sustainable features of our properties, backed by our local team of experts, will attract tenants who are international new economy companies and high-growth sectors," Mirpuri said.

In addition to the two sites currently under development, ESR plans to explore investment opportunities in other popular logistics and industrial centers such as Bangna Trad and Wang Noi districts in Greater Bangkok, and then expand to other parts of Thailand, including Chiang Mai in the north, Surat Thani in the south and Khon Kaen in the northeast. Shen and Gibson also see the potential to create jobs in Thailand, transfer advanced knowledge and expertise to develop the skills of the local labor force and create valuable infrastructure to further develop the economy.

ESR manages $150 billion in assets across Asia Pacific, Europe and North America, with Ontario Pension Service, Singapore's sovereign wealth fund GIC and JD.com of China among its shareholders.