SET-listed WHA Corporation Plc, Thailand's biggest developer of built-to-suit logistics facilities, has set up a joint venture with a large Japanese company to develop two warehouse projects with a total investment value of 2.35 billion baht.

WHA chief executive Jareeporn Jarukornsakul said WHA joined with Daiwa House Industry Co to form WHA Daiwa Logistics Property Co with registered capital of 850 million baht.

The new company, which is 51% owned by WHA and 49% owned by Daiwa House Industry, plans to invest in building two new warehousing and logistics centres at Laem Chabang deep-sea port and on Bang Na-Trat Road.

Jareeporn: IPO plan for power subsidiary

The two logistics centres will have a combined 45,500 square metres of built-to-suit warehouse space to serve clients.

The first phase is in Laem Chabang with 22,500 sq m and has already been taken up by Honda Logistics Asia and its subsidiaries.

The second phase with 23,000 sq m of warehouse space is expected to start construction by year-end with completion in 2017.

The joint venture is seen as a win-win by the companies as they seek to expand business not only in Thailand, but also in Japan, where Daiwa House Industry has more than 200 warehouse and logistics projects spanning 6.4 million sq m that are ready to accommodate clients.

WHA forecasts total revenue to reach 17 billion baht this year, largely aided by the government's economic stimulus measures -- especially the policy to boost industrial clusters, which is helping to increase WHA's customer base.

Ms Jareeporn said WHA also plans to launch an initial public offering for its utilities and power subsidiary company, WHA Utilities and Power, by year-end.

The utilities and power business would have a market capitalisation of more than 10 billion baht and include power generation, water supply and wastewater treatment businesses.

WHA shares closed yesterday on the Stock Exchange of Thailand at 3.14 baht, down two satang, in trade worth 113.5 million baht.