Japan’s Mitsui Fudosan plans to develop two logistics facilities in Bangkok for JPY 18.5bn (US$166m), marking its first overseas logistics deals.
The listed real estate firm will build the warehouses through a joint venture with a subsidiary of Frasers Property (Thailand), Mitsui announced last week.
The first facility, Bangpakong Logistics Parks, will be developed on the eastern outskirts of Bangkok, offering good access to central Bangkok, as well as Suvarnabhumi Airport and the country’s largest seaport, Laem Chabang Port.
The other project, Wangnoi Logistics Park, will be located near a cluster of Japanese manufacturing companies, plus numerous large industrial estates and general wholesalers, on the capital’s northern outskirts.
The Bangpakong Logistics Parks will offer about 160,000 sq.m. of total floor space, while the Wangnoi property will feature 90,000 sq.m.
The deals come as Mitsui Fudosan looks to expand its overseas business as an integrated office, retail, hotel, housing and logistics developer.
It is also targeting Southeast Asia to expand its overseas business.
“Thailand is located in [the] geographical centre of the ASEAN region, where economic integration is gathering pace through initiatives such as the abolition of intraregional tariffs and the development of transportation infrastructure, in addition to benefiting from population growth and economic expansion,” the company said.
“Thailand is a promising logistics market with a large concentration of Japanese companies in manufacturing and other industries.”
The real estate group, which will own a 49% stake in the Thai JV, is currently developing and operating 33 logistics warehouses across Japan.
Mitsui Fudosan’s overseas business is active throughout Asia, US and UK.