WHA Corporation and Daiwa House Industry Sign Joint Venture Agreement for Two Mega Logistics Centers in Thailand

Stocks and Financial Services Press Releases Friday July 29, 2016 16:50
Bangkok--29 Jul--Francom Asia
Located in Laem Chabang and Bangna-Trad, the two projects represent an investment value of THB 2,351.5 Million

WHA Corporation PCL (WHA), the leading provider for logistics, comprehensive real estate, and industrial solutions in Thailand, announced today a joint-venture agreement with Japan-based Daiwa House Industry (Daiwa) to build two mega logistics centers in Laem Chabang and in Bangna-Trad area. WHA will hold 51% and Daiwa the remaining 49% of the new joint venture company, WHA Daiwa Logistics Property Co., Ltd., with a proposed capital of THB 850 million for both projects, worth a total of THB 2,351.5 million.

The first project, WHA Mega Logistics Center Laem Chabang (LCB) for Built-to-Suit concept, will occupy area of 49 rai (78,400 sqm.) with a leasable area of 45,500 sqm. The first phase of approximately 22,500 sqm, export-oriented, was handed over in the 3rd quarter 2015, to Honda Logistics, a wholly-owned subsidiary of Honda. A second phase of approximately 23,000 sqm is being planned to start construction end of this year, with expected completion in mid-2017, depending on Honda Logistics' business expansion.

The second project, WHA Mega Logistics Center Chonlaharnbhichit (Chonlaharn), is located in the Bangna-Trad area. It will comprise the area of 77 rai (123,200 sqm.) with a leasable area of approximately 74,000 sqm. Focusing more on domestic demand in the vicinity of Bangkok, it will be based on a warehouse farm concept, divided in 4 separate buildings, offering the possibility to accommodate several tenants such as Central Group and Hitachi Transport.

"We are very pleased to establish this new joint venture company, WHA Daiwa Logistics Property Co., Ltd., with a large Japanese conglomerate like Daiwa House Industry" said Ms. Jareeporn Jarukornsakul, Group Chief Executive Officer of WHA Corporation Pcl. "We will benefit from each other's expertise in the logistics industry, while using our respective customer relations and network, especially Japanese customers. Together, we can also envisage geographical expansion in neighboring countries in the Asian Economic Community, like Indonesia and Vietnam."

"This joint-venture with WHA is based on the synergy between our two companies' business models," commented Mr Tatsuya Urakawa, Managing Executive Officer, Daiwa House Industry. "From commercial and residential properties, we have developed the Built-to-Suit facilities concept in Japan, similar to WHA in Thailand. It is now our main logistics property business. We will share our construction know-how and customer network with WHA to develop it further, with the objective to utilize our strength to attract more Japanese customers."

As the major shareholder and project management, WHA will be in charge of completing the remaining phases of LCB and Chonlaharn, the joint venture's two initial projects. It will also act as the joint venture's property manager, responsible for marketing and securing new tenants, both Thai conglomerates and multinational corporations, including those in the third-party logistics business (3PLs).

By 2018-2019, LCB and Chonlaharn are expected to become part of WHA Real Estate Investment Trust (REIT), listed in December 2014 in the Stock Exchange of Thailand as WHA Premium Growth Freehold and Leasehold Real Estate Investment Trust (WHART).

Both partners benefit from a wealth of experience and significant assets in the logistics business. In Thailand, WHA controls about 2 million square meters in various logistics facilities, including Built-to-Suit facilities (BTS) and multi-tenant warehouse farms as well as ready-built factories (RBF) and warehouses (RBW). The group plans to reach over 3 million square meters within the next 3-4 years.

In Japan, Daiwa counts 222 logistics facilities representing a total area of about 6.4 million square meters, comprising built-to-suit facilities for specific tenants as well as multi-tenant facilities that can provide immediate solutions to short-term logistics needs.

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