Sena Development has made a name for itself developing condominiums and retail centers across Bangkok. However, it is entering the not so glamorous world of sheds and warehouse as it looks to diversify. The firm recently tied up a joint venture arrangement with Leo Global Logistics that will see the pair launch self-storage units and warehouses in and around the Thai capital.
“In recent years, many housing developers have diversified to other property businesses like offices, hotels, warehouses and ready-built factories. We wanted to create a warehouse business to diversify and decided to join Leo Global Logistics,” Sena Managing Director, Khun Kessara Thanyalakpark, explained to the Bangkok Post. “Self-storage has a low risk. To develop it, capital is not a problem but it depends on how feasible it is with land and development costs.”
The first project under the partnership will be a digital self-storage facility located near Sena Development’s SenaFest shopping complex on Charoen Nakhon Road. Other locations in residential areas, including Ratchadaphisek-Rama IX and Ari, have also been identified for future self-storage projects. Additionally, the developer is searching for suitable land plots that can host a large warehouse.
“Sena can help find locations and develop warehouses and self-storage which will help us minimize development costs, likely by around 10 percent,” Khun Kettivit Sittisoontornwong, Chief Executive of Leo Global Logistics, noted.
Origin also finds opportunities in sheds and logistics
Origin Property has also entered the logistics space via a new joint venture with JWD InfoLogistics. Dubbed Alpha Industrial Solutions, the partners have set ambitious targets for the new company as it aims to capitalize on demand for sheds and warehouses in Thailand.
“This collaboration will create a synergy to serve demand from both B2B and B2C customers. We are confident that our strengths will turn ALPHA into a listed company within 2025 and become one of the top three companies in this business within five years,” Khun Peerapong said.
According to the partners, they are set to focus on cold storage, healthy products, chemical and dangerous goods and automation. The first project from Alpha will be located in the Bangkok suburb of Bangna with work having begun in the second quarter of this year.
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