Ms Kessara, left, and Mr Saito sign the joint venture agreement.

SET-listed developer Sena Development is venturing into the industrial sector amid a residential market downturn, partnering with Japan's Mitsubishi Logistics Corp to develop rental warehouses and factories on Bang Na-Trat KM 23.

Kessara Thanyalakpark, managing director of Sena, said the new business would help diversify revenue and raise recurring income from the current 30% to 50% within the next two years.

"Industrial property is currently the most attractive investment segment," she said. "We didn't jump into this business just because the economy turned sluggish. This has been in our plans for several years."

Sena acquired a 25-rai land plot located 300 metres off Bang Na-Trat KM 23 Road over two years ago, drawn by the attractive price and its designation as a purple zone for industrial development.

On Tuesday, the company signed a joint venture agreement with Mitsubishi Logistics to establish Sena MLC 1 Co, in which Sena and Mitsubishi hold a 51% and 49% stake, respectively.

The new entity, with a registered capital of 180 million baht, will allocate 600 million baht to develop Warehouse-Factory Bangna KM 23, its first project on the 25-rai site.

The project will offer 25,000 square metres of lettable space, with rental rates ranging from 165 to 215 baht per sq m per month.

Construction is set to begin by the end of this year, with completion targeted for the fourth quarter of 2026. Revenue is expected to be recorded starting from 2027.

"Demand for industrial properties is outpacing supply, growing by 9% compared to a 6-7% increase in supply," she said.

"With current occupancy at 90%, the rate is expected to keep climbing."

According to the Economic and Business Research Center, Thailand's warehouse industry is expected to maintain its growth momentum this year.

Leased warehouse space this year is projected to rise by 9.3% from 2024, driven by strong demand, particularly in the Eastern Economic Corridor, a key industrial and logistics hub.

The joint venture will begin with warehouses and factories this year, then expand to industrial estates and logistics parks by 2030, Ms Kessara said.

Hidechika Saito, president of Mitsubishi Logistics, said the logistics sector faces challenges from trade tensions, climate change, and labour issues. However, the firm remains committed to a long-term partnership with Sena.