Frasers' real estate is confident in Southeast Aasia, despite the tariffs: “Demand still exists”
One of the leading real estate developers of Southeast of the Southeast, believes that Donald Trump's efforts to disconnect China are a blessing to his company and the whole region, even if the US President is suddenly threatened in countries such as Thailand and Vietnam.
During Friday's income briefing, Frasers' Real Estate CEO depicted the deglobalization of the Siridashabhdi as a possible way, as “Southeast Southeast markets are still attractive in such a world.” China's interest in Thailand “to diversify and expand in the Southeast Southeast Market,” he said.
Demand for Thai industrial real estate is still due to the reorganization of the supply chain “China and one”, as manufacturers move to Thailand and use the country as a base for wider non-Chinese market service.
One such development is Araya, a business park right near Bangkok, whose Frasers Property is a stake. Araya, also known as the “Eastern Gate”, is an offer to bring to Thailand to highlight production. The project, announced in February, covers about 740 hectares and has an industrial technology campus, logistics park and residential facilities.
“In general, demand is still there. The tenants we are talking about are still focused on moving their factories to Thailand,” said Lim Huag, CEO of Asian markets. “Tariffs do not affect all factors.”
LIM added that with high tariffs in China, Southeast is still an attractive opportunity for Chinese manufacturers.
So far, Infineon, a German semiconductor, has been confirmed as a tenant of one park. Delta Electronics (NIHD), a subsidiary of Delta Electronics, a Taiwanese company, has acquired land in Arayas.
Frasers real estate income
If Frasers Property is best known for its shopping centers and residential projects, the industrial, logistics and business park segment forms just over half of the company's real estate assets. Frasers Property's full real estate portfolio is worth $ 34.2 billion in Singapore ($ 26.3 billion).
However, Frasers Property revenue for the six months ended on March 31. The company reported $ 1.59 billion of Singapore ($ 1.22 billion) of the revenue, 2.7% more than a year ago, driven by Singapore higher residential areas.
The profit attributed to the company increased by 147.6%, reaching $ 142.2 million to the Singapore dollar ($ 109.4 million).
This story was originally reflected on Fortune.com
