Frasers Property Industrial (Thailand) sets to expands its portfolio to 4 million sqm (AUM) by 2025, adopting a new ‘Purple Ocean Strategy’ to strengthen its position as the industrial property leader
Frasers Property Industrial (Thailand) Company Limited (“FPIT”), Thailand’s leading industrial property developer and wholly owned subsidiary of Frasers Property (Thailand) Public Company Limited (“FPT”), announced its five-year plan and business direction at a press conference ‘The New Inspiring Seamless Business Solution Experiences 2021’.
At the event, Mr. Sopon Racharaksa, CEO of Frasers Property Industrial (Thailand) Company Limited, revealed FPIT’s Purple Ocean Strategy to prompt and create the Company’s readiness and differentiation to win competitions in Red Ocean and succeed in capturing new demands from Blue Ocean. Along with this business strategy, the company’s insights obtained over three decades operating the industrial property business will be used to provide holistic solutions to cater to evolving needs and demands for factories and warehouses in the market.
Mr. Sopon Racharaksa, CEO of Frasers Property Industrial (Thailand) Company Limited, said: “FPIT places importance on continuous learning and development, innovation via Design Thinking as well as business transformation as a means to evolve the Company’s capabilities to address business competition and satisfy all customer demands. Currently, FPIT holds the leadership position in industrial property business with total assets under management (AUM) of 3 million sqm while maintaining an average occupancy rate of 82% this year to-date.”
To strengthen the Company’s capabilities, the two key pillars of FPIT’s Purple Ocean strategy are ‘Creating Readiness’ and ‘Differentiation’:
• Increase the number of strategic locations to further strengthen geographic coverage as a competitive advantage.
• Partner with emerging role specializations and industry experts to enhance the value of areas such as robotic automation and asset management as well as to develop new business opportunities.
• Redevelop current property assets to enhance customer experience through Asset Enhancement Initiatives (AEI).
• Augment the current regional portfolio of industrial properties in new city locations with connectivity to global supply chains such as Greater Jakarta, Indonesia, and Binh Doung, Vietnam, to strengthen the business ecosystem proposition and cater to growing demand for industrial properties in the international market.
• Continuously develop and progress FPIT’s people resources in line with global standards. Innovative concepts such as Design Thinking, customer-centricity, big data analytics, etc. are being applied at FPIT.
• Leverage emerging technological capabilities to develop smart industrial properties over FPIT’s PropTech platform.
• Develop new multifaceted projects to serve different types of customer needs for factories and warehouses. As examples, bringing logistical operations closer to cities with In-Property Logistics and In-City Logistics projects, and developing new industrial townships that sites high-potential assets within the same development.
• Respect Frasers Property’s sustainability goals including its 2050 net-zero carbon target and ESG (Environmental, Social, Governance) standards. The Company’s Green Development Policy ensures all new and refurbished developments are sustainable throughout the value chain and come inbuilt with sustainable solutions. Accordingly, FPIT will increase its investment and coverage of solar roof installation.
• Develop new business models to serve emerging customer segments such as co-warehousing and flexible storage space solutions for small and medium enterprises, and smart storage to increase efficiency and productivity in logistics operations.
“While the COVID-19 pandemic and ongoing trade war provides tailwinds to FPIT and the wider industrial space, we remain committed to growth and continuous learning. We believe our newly launched Purple Ocean Strategy will generate business resilience for sustainable and long-term. FPIT will continue to deliver an inspiring seamless business solution catered for different customer segments to ensure that their business needs are met. We are confident that the Company will grow by 10-15% per year and will achieve the portfolio expansion to the total asset under management (AUM) of 4 million sqm by 2025,” Mr. Sopon concluded.