Bt5-bn boost for Pinthong Industrial Park

Real Estate March 12, 2014 00:00

By The Nation

Already covering more than 6,000 rai (960 hectares) in the Eastern region, Pinthong Industrial Park will expand further after the launch of Projects 4 and 5 worth about Bt5 billion to fulfil the needs of investors, both local and those from Japan and Chin

PIP has the advantage of being close to marine and air transport routes. The company plans to issue a Pinthong Industrial Park Property Fund (PPF) worth Bt2.6 billion to support expansion and provide working capital.
Company president Peera Patamavorakulchai said PIP operated in five locations in Sri Racha district of Chon Buri province, with total worth of about Bt14 billion. It has operated there for nearly two decades.
In the next three years, PIP plans to expand its industrial-park business in Sri Racha and surrounding area. Its tenants are in the business of auto components, electronics, transport, plastics, and packaging and containers. PIP provides leasing of ready-made factories, factory construction, and sale of land plots for factories.
Executive director Somsri Duangprateep said Pinthong Industrial Park Projects 4 and 5 would have a combined area of 2,200 rai and total project value of about Bt5 billion. Land cost averaged Bt3 million per rai. 
PIP will proceed with marketing activities for the two projects next quarter. It hopes to finalise sales within three years. 
Japanese, Chinese and Thai investors, both existing and new, are planning to expand their businesses and/or relocate to Project 4 or 5. PIP expects 70 per cent of the existing factories and business operators in the Eastern region to invest in the two projects, with the remaining 30 per cent to be accounted for by new investors or business operators. 
PIP says its leasing rates and land-plot prices are about 23 per cent below the average in the Eastern region. In its 2012-2013 fiscal year, PIP’s overall revenue was Bt4.08 billion, and profit before tax was Bt900 million. Projects 4 and 5 should boost annual revenue to Bt4.8 billion and net profit before tax to about Bt1.6 billion.