ESR Group, one of Asia Pacific's largest real estate managers specialising in logistics hubs and data centres, has expanded into Thailand with the opening of a new office.
The Hong Kong-listed group is currently developing two logistics and industrial parks in Thailand, representing a capital investment of 8 billion Tahi bahts (S$313 million).
ESR Group’s head of Singapore Development & Thailand, Jai Mirpuri, said the company intends to further invest S$1.3 billion in the country by 2027, via its development funds.
He added that Thailand is the second-largest economy in Southeast Asia and an important component of ESR’s strategy for this region.
The government has launched Thailand 4.0 to transform the country into a value-based economy, which includes key sectors including new-generation e-commerce, logistics, automotive and digital industries, Mirpuri said.
According to ESG, the first project is in Rojana Industrial Estate Laemchabang situated near the Laem Chabang deep seaport, identified as part of the Eastern Economic Corridor (EEC).
It is expected to be completed by the end of 2025.
EEC is a development project by the Thai Government and is a special economic zone in eastern Thailand.
The second is in Asia Industrial Estate Suvarnabhumi Centre of Bangkok to develop national distribution hubs for logistics companies, e-commerce operators, aggregation and distribution of goods via air freight, and the movement of temperature-sensitive goods.
It is due for completion by the end of 2026.
ESR Group Co-founders and Co-CEOs, Jeffrey Shen and Stuart Gibson said the expansion into Thailand is in line with one of the company’s three growth pillars to expand the New Economy business including logistics, data centres, life sciences and high-tech industrial sectors, especially in Southeast Asia.
As per ESG, it will explore opportunities to invest in other strategic locations with potential for logistics growth, such as the Bangna-Trad, Eastern Economic Corridor, and Wang Noi areas.
Subsequently, the group said it will expand to other parts of Thailand including Chiang Mai, Surat Thani and Khon Kaen.