Property/M.K. Real Estate Development

M.K. Real Estate Development to shift focus to industrial property business as new growth engine

Editorial staff

M.K. Real Estate Development Plc is shifting its focus to industrial property business by forming a joint venture with BTS Group to develop industrial estate for land sales, which is scheduled to open in 2027.

Vorasit Pokachaiyapat, CEO of M.K. Real Estate Development, the developer of Chuanchuen housing estate project, said that he will end his role in residential business within the next three years, shifting his focus to industrial estate, a new growth engine and core income contribution. At present, it has 800 units of town house with project value of 2.9 billion baht for sales in Bangkok and Prathum Thani province.

“I stopped buying new land for 3-4 years ago and have decided to exit the residential business in the next 3 years. Prospect Development (PD) is the flagship and key growth engine for M.K., especially in times when the residential property market is facing headwinds,’’ he said.

“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,” Mr Vorasit added.

Prospect Development Co, a subsidiary of M.K. Real Estate Development, develops and manages Bangkok Free Trade Zone (BFTZ) projects in three locations.

Backed by a 6.5-billion-baht investment, PD will launch the Bangpakong Industrial Estate by forming a joint venture with BTS group. It will be on a 1,000-rai site in Chon Buri, Thailand’s Eastern Economic Corridor (EEC).

Expanding 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.

Rachanee Mahatdetkul, managing director of Prospect Development Co, 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 land sales target of approximately 680 rai within 2-3 years.

“In 2024, the eastern region attracted the highest investment value nationwide, totaling 573 billion baht. During Q1/2025, foreign investment in the EEC amounted to over 24.2 billion baht— 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.

In 2024, PD recorded total revenue of 898 million baht, with 485 baht 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.

Aon-Anong Chaithong, chief executive officer of Prospect REIT Management Co, said: “Prospect REIT is preparing for its second capital increase and will invest in assets from PD worth up to 3.35 baht 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 10 billion baht by 2026.”