Thai factory developer Ticon Industrial Connection PCL halved its 2015 revenue growth target last Tuesday on weak economic growth prospects and said it would focus on expanding in Southeast Asian to offset sluggish demand at home.
Ticon, the third biggest factory developer by market value and which also builds warehouses, expects revenue to rise 5 percent this year, mainly from rental and service income, slower than an earlier forecast of 10 percent, Managing Director Virapan Pulges told reporters.
He declined to give a specific figure but said the company expects to book gains starting in the third-quarter from its Indonesian joint venture with Japan’s Mitsui & Co and Indonesian developer PT Surya Semesta Internusa Tbk.
“This year, we will focus on Indonesia. The market is likely to grow at a higher rate than Thailand,” Virapan said.
The project, located at Suryacipta Technopark about 60km east of Jakarta, is expected to have a total area of 146,195 square metres of warehouses and factories for lease.
Ticon has also said it wants to expand into in Myanmar and Vietnam, and in March said it plans to invest 50 billion baht ($1.54 billion) over the next five years to expand its ready-built factories and warehouses at home and in Southeast Asia.
Leading warehouse developer WHA Corp is also looking to expand in Southeast Asia, where this year’s launch of a regional single market is expected to spur demand for warehouses and factories.
WHA aims to boost its warehouse area in Southeast Asian to at least 100,000 square metres over the next three years, it said in a statement last Tuesday. (Reuters)