Thailand-based real estate development firm Sena Development PCL and logistics company Leo Global Logistics PCL (LGL) have formed a joint venture to pursue self-storage and warehouse projects in Bangkok. The partnership will allow Sena to diversify from its traditional commercial and residential developments as well as reduce its overall project costs, according to the source.
“In recent years, many housing developers have diversified to other property businesses like offices, hotels, warehouses and ready-built factories,” according to Kessara Thanyalakpark, managing director for Sena. “We wanted to create a warehouse business to diversify and decided to join Leo Global Logistics.”
LGL operates two self-storage facilities in Bangkok under the Leo Self Storage brand name. Under the partnership, Sena will develop a 1,300-square-meter facility in a vacant spot inside its SenaFest shopping mall on Charoen Nakhon Road. The partners have also identified two potential opportunities that are in areas dense with condominium homes and office buildings, where self-storage demand is strong, the source reported.
“Self-storage has a low risk,” Thanyalakpark said. “To develop it, capital is not a problem, but it depends on how feasible it is with land and development costs.”
“Three success factors for self-storage businesses are good location, timely investment in the right location and better facilities [than competitors],” said Kettivit Sittisoontornwong, CEO for LGL, adding that profit margins are also higher for self-storage than other property-based businesses.
Sena specializes in residential and retail development projects. It’s publicly traded on the Stock Exchange of Thailand.
LGL specializes in logistics businesses including cargo and freight as well as warehousing and distribution management. It’s also publicly traded, with a listing on the Market for Alternative Investment.
Source: Bangkok Post, Sena Joins Forces With Leo in Warehouse, Self-Storage Move