ESR Group Limited ("ESR" or the "Company", together with its subsidiaries, the "Group"; SEHK Stock Code: 1821), APAC's leading New Economy real asset manager, has fully leased out Phase 1 of the circa 363,000 square metre ("sqm") ESR Asia Suvarnabhumi to four Japanese and U.S. transnational corporations ("TNCs") who are in the logistics, advanced manufacturing, and pharmaceutical space.
ESR Asia Suvarnabhumi is now operational, housing NX Shoji (Thailand)'s cargo transportation services for a major automaker, Nishiyori (Thailand)'s industrial manufacturing of premium pulp mould packaging for luxury products, and Amphenol Corporation's electronic module production for a popular electric vehicle manufacturer. ESR's construction of a customised manufacturing facility for the fourth customer, Kobayashi Pharmaceutical Manufacturing (Thailand), is well underway, with completion expected in the second quarter of 2025.
ESR Asia Suvarnabhumi offers customers a mix of standard, ready-built buildings for quick business operationalisation as well as built-to-suit facilities that are customised according to specific business needs - all of which are in line with our human centric design philosophy.
The new business activities have already created approximately 1,000 new jobs for the local Thai community, with ESR hiring for property management and ancillary services as well as our customers employing workers to carry out their business operations.
Aside from rooftop solar panel provisions, ESR has mounted translucent skylights as daylighting solutions to conserve energy use. The Company will also kickstart a trial of solar-powered street lighting at ESR Asia Suvarnabhumi to assess viability for large-scale deployment. In addition, infrastructure has been prepared to support customers' future Electric Vehicle charging station requirements. ESR incorporates human-centric features to complement Thailand's Bio-Circular-Green economic development concept.
Jai Mirpuri, Head of Southeast Asia, ESR Group, said, "The development of sustainable and efficient properties is ESR's way of supporting the country's growth trajectory and attracting investment to strengthen the economic landscape for the local communities. Our long-term investment in Southeast Asia's second-largest economy will lead to significant gains in critical supply chain infrastructure, amid increasing demand from multinational and domestic customers for high-quality Grade A logistics and industrial spaces. For capital partners, our fully integrated closed loop investment solutions that we are replicating across our network of operations will enable regional exposure at scale."
Thailand is a key part of ESR's Southeast Asia growth strategy which leverages secular growth in one of the fastest growing regions in the world. Covering over three million sqm in industrial and logistics real estate, ESR's leading development and asset management platform in Southeast Asia also counts Indonesia, Vietnam, Malaysia, and Singapore as key growth markets.
Sayarm Tongkrabin, Head of ESR's Thailand platform, added, "We thank NX Shoji, Nishiyori, Amphenol Corporation, and Kobayashi Pharmaceutical Manufacturing for the partnership and shared vision in driving growth for Thailand. Being our first development project here, ESR Asia Suvarnabhumi has given us the opportunity to showcase to the country how we invest, operate, and work collaboratively with stakeholders. As a key differentiating factor to serve our investors and customers better, we take a unified approach whereby our teams of local experts drive the entire development, fund management, and asset management lifecycle."
Space planning and negotiations with multiple prospective customers are underway for the rest of the available land at ESR Asia Suvarnabhumi, which will be developed in stages in line with customer demand and requirements.
In Thailand, ESR has total assets under management of nearly US$215 million and approximately 130,000 sqm of gross floor area (both completed and under construction) across its current portfolio of four projects: ESR Asia Suvarnabhumi, ESR Asia Laemchabang, ESR Asia Bowin, and ESR Asia Wangnoi. Driving its Southeast Asian growth engine and to expand its market leadership, ESR targets to build a portfolio of two million sqm of logistics and industrial properties in Thailand within five years, with a total investment value of approximately US$1 billion.