Backed by a THB 6.5 billion investment, PD will launch the Bangpakong Industrial Estate on a 1,000-rai site in Thailand's Eastern Economic Corridor (EEC), with the aim to build steady cash flow through land sales and rental income.
The company also plans to inject up to THB 3.35 billion worth of assets into PROSPECT REIT within Q2/2025 to reinforce its capital recycling strategy.
M.K. Group Restructures to Position PD as the Key Driver of Recurring Income
Following a major corporate restructuring, M.K. has positioned its industrial property arm as a core business pillar. Last year, PD contributed 47% of the group's total revenue and 54% of the gross profit.
Mr. Vorasit Pokachaiyapat, Chief Executive Officer of M.K. Real Estate Development PCL, stated: "Prospect Development is the flagship and key growth engine for M.K., especially in times when the residential property market is facing headwinds. The restructuring sets a solid foundation for M.K.'s long-term sustainable growth, focusing on business segments that can fully leverage market opportunities. PD's strong performance, especially as the leader in Thailand's free-zone warehouse and factory rental market, and now its expansion into industrial estate, reinforces its role as the group's new business S-curve".
PD's "E-E-C" Strategy Expands into Full-Fledged Industrial Estate Development
The expansion into Bangpakong Industrial Estate demonstrates PD's capability beyond rental zones, leveraging its success at BFTZ, which is widely trusted by top-tier industrial tenants. This move aligns with national investment strategies, as the company expands its portfolio to support Thailand's targeted industries.
Ms. Rachanee Mahatdetkul, Managing Director of Prospect Development Co., Ltd., said: "Bangpakong Industrial Estate marks a milestone in expanding our industrial real estate capabilities while supporting Thailand's national investment and economic strategies. Located in the EEC — a top-tier investment destination — the project will be developed in collaboration with the Industrial Estate Authority of Thailand (IEAT). It will cater to seven target industries including agriculture, food processing, automotive, electronics components, light industries, and digital sectors such as data center and cloud."
Situated in Khlong Tamru, Mueang Chon Buri District, Chonburi, the estate will be developed as an eco-industrial estate that balances economic growth with social and environmental responsibilities. The project is currently undergoing EIA assessment and is expected to begin operations in 2027, with a first-year land sales target of approximately 680 rai.
"In 2024, the eastern region attracted the highest investment value nationwide, totaling THB 573 billion. During Q1/2025, foreign investment in the EEC amounted to over THB 24.2 billion — 52% of total foreign direct investment. Our BFTZ 4 Bang Pakong project, adjacent to the new estate, is already 100% leased despite some areas still undergoing development. This clearly indicates strong demand for strategic locations, even amid global uncertainties, including trade wars and tariffs. Thailand retains a strategic edge with its robust infrastructure and role as an ASEAN production hub. Tapping into new Free Trade opportunities and proactive investment promotion remain key to sustaining industrial growth," Ms. Rachanee added.
To sustain growth, PD is anchored by three strategic pillars of the E-E-C Strategic Framework:
- ENLARGE from Core Strengths - Expanding the business from its proven strengths and expertise.
- EVOLVE with Flexibility and Adaptability - Staying agile to navigate dynamic market conditions.
- COLLABORATE for Greater Impacts - Partnering across dimensions for synergistic growth.
In 2024, PD recorded Total Revenue of THB 898 million, with THB 485 million from rental and service income, a 21% year-over-year increase in rental revenue. The company is accelerating the development of key projects, including BFTZ 4 Bang Pakong and BFTZ 6 Bangna-Trad KM.19, with the aim to maintain over 90% occupancy across all sites in 2025 and sign over 200,000 square meters in new leases.
Continued Asset Sales to PROSPECT REIT to Strengthen Capital Base
As the REIT sponsor and property manager of PROSPECT REIT, PD plans to sell partial assets from BFTZ 1 Bangna-Trad KM.23, BFTZ 2 Theparak, and BFTZ 3 Bangna-Trad KM.19, totaling 221,678 square meters of leasable space.
Ms. Aon-Anong Chaithong, Chief Executive Offer of Prospect REIT Management Co., Ltd., said: "PROSPECT REIT is preparing for its second capital increase and will invest in assets from PD worth up to THB 3.35 billion, with subscription scheduled for May 19 to 23, 2025. We are also assessing other projects from PD as a future investment. PD's quality assets and expertise as a REIT sponsor have ensured consistently high renewal and occupancy rates. The REIT manager will remain focused on prudent, efficient asset management to deliver stable returns to unitholders, with an asset size target expanding to THB 10 billion by 2026."
These plans reinforce PD's position as M.K. Group's flagship company and as a major contributor to the future of Thailand's industrial sector.
