The company confirms aim to increase space for rent by 400,000 sq.m.
with 12 Billion Baht budget set aside by end 2013 for more land purchase
and construction of ready-built factories and warehouses for rent
Bangkok – 15 August : TICON or TICON Industrial Connection Public Company Limited announced first half 2013 performance on track with target. Net profit as at 30 June 2013 totals 421 million Baht or an increase of 32% compared to the same period of last year. Majority of revenue comes from factory and warehouse rental.
Mr Virapan Pulges, Managing Director of TICON disclosed, “TICON is satisfied with the results of first half 2013 performance which is on track with target announced at the beginning of this year. Revenue from factories and warehouses for rent totals 558 Million Baht. Within this 55% comes from TICON’s factories for rent and the rest of 45% from high quality ready-built-warehouses for rent of TPARK which is a subsidiary of TICON. In addition, the company also has other revenue from investment in TICON Property Fund (TFUND) and TPARK Logistics Property Fund (TLOGIS) which TICON holds 20% shares in each fund, resulting in net profit at the end of the first half of this year totaling 421 Million baht.
Foreign Investment continues to flow into the country during the first half of 2013. TICON has a total of 41 new customers for both factories and warehouses for rent, resulting in a total accumulated 500 customers of TICON and TPARK at the end of July 2013. Within the total number of customers, over 90% are international companies and approximately 50% are from Japan. Most customers are in the automotive, electronics and modern trade industries. Specifically consumer sector shows significant increasing trend.”
“As at the end of July 2013 combined new leased space of TICON’s factories and TPARK’s warehouses totals 254,981 sq.m. The company is therefore confident that we will be able to increase new space for rent to a total of 400,000 sq.m or 30% growth target by the end of 2013 as earlier announced at the beginning of this year.
The second half of 2013 will see continuous growth of warehouse for rent business, especially in the area of Bang-na Trad, Bangplee and in the provinces along the boarder areas due to industrial expansion and preparation for the agreement among the ASEAN Economic Communities or AEC which
will be effective in 2015. TICON group has also set plan to prepare for the AEC. For 2013 the company has allocated a budget of 12 Billion Baht to buy more land for the construction of additional ready-built factories and warehouses for rent. During the first half, TICON and its subsidiary – TPARK have spent 6 Billion Baht for land purchase totaling 1,200 rai in the Eastern industrial area and the boarder provinces in the North Eastern region.,” said Mr Virapan.
Recently TICON bought additional 226 rai of land in AMATA City and AMATA Nakorn. At the beginning of this year TPRAK also acquired over 200 rai in Khon Kaen Province and in July purchased 180 rai in Bangkok Free Trade Zone (BFTZ) which will be developed into “TPARK Bangplee 2” following the great success of TPARK Bangplee 1”. As a result, TPARK has now become the warehouse and logistic park developer with the biggest amount of ready-for-use land in the strategic location in Bangplee area where demand for ready-built warehouses is increasing rapidly.
“At present, TICON group has a total 7,268 rai of ready-for-use land, both developed and under development plots. Within this total land area, 36% is under TICON management and 64% under TPARK. TICON has a total space of 990,990 sq.m of factories for rent located in 15 projects while TPARK has a total space of 705,556 sq.m of warehouses for rent in 27 projects in major strategic locations of the country.
In the 2nd half of 2013 TICON group will proceed with its intention to buy more land in strategic locations. The company aims to increase its land bank to a total of 7,500 rai by the end of 2013. This will enable the company to consistently meet demands for both factories and warehouses for rent and at the same time confirms the readiness of TICON group to cope with the demand from the industrial sectors which will continue to expand steadily in the future.”, concludes Mr Virapan.
About TICON
TICON or TICON Industrial Connection Public Company Limited was established in 1990 to provide manufacturers in Thailand with an alternative to having to buy land and develop their own facilities. TICON provides high quality ready-built factories for lease to enable manufacturers to shorten the start-up period. TICON’s ready-built factories are located in major industrial estates, 15 locations at present, and have a range of sizes that best meet customers’ standard requirements.
As the business became more capital intensive, in 2002 TICON was listed in the Stock Exchange of Thailand (SET) followed by the establishment of TICON Property Fund (TFUND) in 2005, also listed on SET, for further capital raising. In 2006 TICON set up a 100% owned subsidiary, TPARK or TICON Logistics Park Company Limited to develop logistics parks and high quality ready-built warehouses for lease. Later in 2009 TPARK Logistics Property
Fund (TLOGIS) was established and listed on the SET as a listed property fund for TPARK warehouses, in the similar manner as TFUND was established for factories. The intention of both TFUND and TLOGIS is not merely to acquire assets from TICON and TPARK, but to be generic factory and warehouse investment funds. The funds, through TICON as property managers, therefore seek to acquire other prime industrial and warehousing property investments.
At present TICON has a total of 990,990 sq.m. of factories for rent in strategic locations nationwide. We listen to the needs of customers and, over time, offered a number of associated services to assist customers starting up. These include obtaining utilities at the customers’ required capacities, obtaining the necessary licenses, helping with modifications, obtaining and renewing Work Permits for expatriate staff, and generally helping with supplier introductions.
TICON : The Fast, Simple, Flexible and Efficient way to manufacture in Thailand
For more information, Please contact
BrandComm Consultants Co.,Ltd.
Mr.Thanawat Charoensuk / Ms.KornnikaBeranonda
Tel. 02-3146877-9 Fax.02-3188847
ticon.co.th