Frasers Centrepoint revealed that it has signed a conditional agreement to invest THB13.23 billion in Ticon Industrial Connection, an industrial property developer that specialises in building factories and industrial estates. Should the deal be completed, Frasers will own a 40 percent stake in the company.
The proposed investment by Frasers, a global real estate company based in Singapore, would allow it to extend its exposure in Thailand to the industrial property asset class and allow it to further grow overseas income. Currently it focuses mostly on residential and hospitality mixed-use developments
Ticon has developed and built factories and warehouses in 18 industrial estates and 33 logistics locations in Thailand, The Nation reported. At the moment, it owns and manages an estimated 2.5 million sqm. of industrial space in the country. It is also the sponsor of three listed property funds and a listed REIT in Thailand with combined assets under management sitting at approximately THB32.4 billion.
In a statement, Ticon announced that its board has already approved the deal with Frasers. The company believes the transaction will allow it to add a strategic partner and financially strengthen the company so it is better able to reach its goals. The company wants to be a leader in the industrial property development sector in Asean.
Virapan Pulges, the managing director of Ticon, explained to the newspaper that the company’s board of directors approved the capital increase and allotment of new shares and will now be well positioned to explore opportunities in Thailand and the region. He added the deal should give a better return to the company and its shareholders in the long term.
Frasers is not known for industrial development, focusing instead on residential, commercial, retail and industrial properties in Singapore and Australia. Its hospitality business spans more than 80 cities across Asia, Australia, Europe and the Middle East.
