Hong Kong-listed real estate giant ESR has officially expanded into Thailand with the opening of a new office, as it looks to invest about $235 million to develop two logistics and industrial parks in the country.
ESR’s expansion into Thailand aligns with the company’s growth strategy focused on the new economy sectors of logistics, data centres, life sciences, and high-tech industries in the rapidly growing Southeast Asia region.
The opening of its Thai office comes as ESR is developing two logistics and industrial parks in the country — in Rojana Industrial Estate Laemchabang and in Asia Industrial Estate Suvarnabhumi, according to an announcement.
The first project situated in Laemchabang is expected to be completed by end 2025 and will have a land area of approximately 160,000 square metres and a gross floor area of 93,000 square metres.
The second project, situated in Suvarnabhumi, is due for completion by end 2026. It will have a land area of approximately 363 square metres and a gross floor area of 253,500 square metres.
In addition to the two properties that ESR is currently developing, it will also explore opportunities to invest in other strategic locations with significant potential for logistics growth, such as the Bangna-Trad, Eastern Economic Corridor, and Wang Noi areas and subsequently expand to other parts of Thailand, including Chiang Mai, Surat Thani, and Khon Kaen.
“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,” said ESR Group co-founders and co-CEOs Jeffrey Shen and Stuart Gibson.
As part of ESR’s ESG focus, the group’s portfolio of industrial real assets in Thailand will include renewable energy generation, human-centric design, electrification of logistics fleets, water efficiency management, and reduction of carbon footprint during development.
ESR said these are incorporated right from the design stage and will be implemented without compromising on functionality and efficiency for tenants.
Over the next five years, ESR, via its development funds, intends to invest a further $1 billion into Thailand, in line with the country’s projected GDP growth at 3.28% CAGR from 2022 to 2027, according to Jai Mirpuri, head, Singapore Development & Thailand at ESR Group.
ESR is the largest real asset manager in the Asia-Pacific region and the third-largest listed real state investment management globally.
With approximately $150 billion in total assets under management (AUM), its fully integrated development and investment management platform extends across the key APAC markets, including China, Japan, South Korea, Australia, Singapore, India, and New Zealand.
