Ticon Industrial Connection PCL (TICON) has set up a joint venture company with Indonesian property developer PT Surya Semesta Internusa Tbk (SSI) and Japan’s Mitsui & Co to invest in factories and warehouses for lease business in Indonesia.
The newly-established firm, called PT SLP Surya TICON Internusa (SLP), has a registered capital of $46.4 million. For the shareholding structure, SSI holds 50 per cent stake while TICON and Mitsui holds 25 per cent each.
TICON’s managing director Virapan Pulges said that this was its first expansion into Indonesia with high potential partners especially SSI, which is a leading property developer and listed on the Indonesian Stock Exchange.
It will start developing the first project in Suryacipta Technopark, which is 60 kilometre far from Jakarta. However, he said that SLP would also invest in the operating project, so it can start to recognise the revenue once the deal was completed.
In 2015, TICON has allocated the budget of 1.5 billion baht ($46.43 million) for the investment in Thailand, excluding the investment through its subsidiary TPARK.
It plans to expand the rental space for factories by adding 100,000 square metres this year as well as developing mini factories with the size of 500 square metres in a bid to serve the rising demand from foreign small and medium-sized enterprises.
He said that that the company would raise fund by selling its factories worth 4 billion baht ($123.83 million) to TICON Real Estate Investment Trust (TREIT) in the second or third quarter this year.
Currently, TICON Group operates 50 projects of factories and warehouses, for rent with total of 707 units, on 2.2 million square metres of land, worth around 35.53 billion baht ($1.1 billion). It also owns 2.5 million square metres of undeveloped land.
Last year TICON made total revenue of 5.86 billion baht ($181.42 million) and the net profit of 761 million baht ($23.56 million). It plans to invest 50 billion baht ($1.55 billion) over the next five years in Thailand and overseas focusing on the ASEAN region such as Indonesia, Myanmar and Vietnam.