Ticon enters rental factory JV in Indonesia

warehouse-nki

Ticon Industrial Connection has formed a joint venture in Indonesia with local partner SSIA and Japan’s Mitsui to build international-quality warehouses and factories for lease to the automobile, electronics, consumer products, logistics and other industries.

“This is our first expansion into Indonesia together with high-potential partners like SSIA, which is a leading property developer listed on the Indonesian Stock Exchange, and Mitsui, one of the world’s most diversified and comprehensive trading, investment and service companies,” managing director Virapan Pulges said yesterday.

SLP Surya Ticon Interusa was set up with registered capital of US$46.4 million (Bt1.6 billion). SSIA holds 50 per cent and Ticon and Mitsui 25 per cent each.

The initial development covers 16 warehouses with rental space of 2,160 square metres each. Rental space of 34,560sqm in the first phase is now completed and 81 per cent occupied. 

The next phase will follow next quarter. When the Technopark project is completed, SLP will have a total of 146,195sqm of warehouse and factories for lease.

This collaboration reflects the partners’ confidence in Ticon’s more than 25 years of professional experience as a developer of rental warehouses and factories with high standards in Thailand. 

The company is confident that with a strong connection with customers – mostly global and multinational companies from the manufacturing and logistics industries – Ticon can leverage its long-term expertise to ensure the success of this JV.

Ticon comes especially with the ability to understand customer needs and to provide engineering and design support to the construction and development of the facilities to meet international standards, Virapan said.

Johannes Suriadjaja, president director of Surya Semesta Internusa (SSIA), said Indonesia was a prime investment destination, as its government is seeking to add to the $22 billion worth of large infrastructure projects already planned for this year. 

The government plans to spend annually to maintain and upgrade its logistical network and utilities, and it is quite clear that demand for warehouses and factories for lease will increase significantly, he said.

Eiichi Tanabe, general manager of the second overseas business development department in the Urban Development Division at Mitsui & Co, said Indonesia had become an increasingly important investment hub for foreign companies, especially from Japan, which accounted for 9.5 per cent of the market last year. 

Indonesia will become a valuable manufacturing base to serve the fast-growing demand of the domestic market and help fulfil potential growth in the export sector, especially after integration into the Asean Economic Community by the end of this year. 

“We are confident that Mitsui, along with our professional partners SSIA and Ticon, will drive SLP to become Indonesia’s leading and largest industrial property [developer] for rental warehouses and factories in the future.”

Source : The Nation | May 20, 2015
Thomas D’Innocenzi
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About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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