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.
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.”