Demand for warehouse space from the e-commerce sector is on the rise.

With limited supply and rising demand for ready-built factory and warehouse space, SET-listed industrial estate developer Frasers Property (Thailand) Plc (FPT), owned by the Sirivadhanabhakdi family, aims to increase the occupancy of its ready-built factories and warehouses to 80% in fiscal 2019, which started in October 2018.

President Sopon Racharaksa said the company continues to drive industrial property business growth, particularly ready-built factories and warehouses, to cope with rising demand for industrial and logistics operations, especially in the e-commerce sector.

E-commerce is growing vigorously. During 2017-18, Thailand's e-commerce market value grew 14.0%, according to the Electronic Transactions Development Agency.

"Leasehold industrial property development continues its upward trend with favourable factors including increased trade and domestic consumption, economic drivers surrounding Thailand 4.0 policy and tremendous growth of e-commerce," he said.

Overall demand for factory and warehouse space increased. Growth was also seen in ready-built buildings that are designed to meet the needs of companies and allow them to get their industrial and logistics operations up and running quickly.

Mr Sopon said industrial properties in Bang Phli are getting more interest from customers as this zone is ideal for last-mile delivery, resulting in a high occupancy rate of ready-built facilities in Bang Phli at 95%.

"We are confident our goal for fiscal 2019 of total occupancy for ready-built factories and warehouses of 80% will be achievable," he said. Last fiscal year, it was 73%.

In the first quarter of the fiscal year, ending on Dec 31, FPT reported factory assets under management (AUM) occupancy rate of 72%, up from 68% in December 2017, with the warehouse AUM occupancy rate rising to 79% from 71%.

In the period, FPT posted a net profit of 684 million baht on revenue of 2.57 billion, gains of 190% and 341%, respectively. The growth was mainly from sales of properties into FTREIT (Frasers Property Thailand Industrial Freehold & Leasehold REIT).

Logistics and industrial businesses located in Asia are a major investment of Singapore-based Thai-owned Frasers Property Group, FPT's parent firm. The group has invested in 80 cities in 30 countries across the world.

FPG, one of two major shareholders of Singaporean co-working operator JustCo, plans to launch the third JustCo branch in Thailand, with 8,000 square metres on the 24th to 27th floors of mixed-use project Samyan Mitrtown.

The first two locations include 3,000 sq m at AIA Sathorn Tower on Sathon Road and 3,700 sq m at Capital Tower, All Seasons Place on Wireless Road.

"JustCo will support some of our customers who have warehouses outside Bangkok and want to have a meeting or work in the inner city," said Mr Sopon. "We plan to expand more than 3,000 sq m per year."

FPT shares closed unchanged yesterday on the SET at 17.20 baht in trade worth 800,390 baht.