Prospect Development, M.K. Real Estate’s flagship, announces its “2025 Transformative Growth Mission,” backed by a THB 6.5 billion investment to launch the Bangpakong Industrial Estate in the EEC. The move aims to build steady cash flow through land sales and rentals, complemented by a planned THB 3.35 billion asset injection into PROSPECT REIT, reinforcing its strategy for sustainable, long-term growth.
Bangkok, May 15, 2025 – Prospect Development Co., Ltd. (PD), a subsidiary of M.K. Real Estate Development Plc. and a leading developer and property manager of Bangkok Free Trade Zone (BFTZ) projects for over 15 years, today unveiled its ambitious “2025 Transformative Growth Mission.” This strategic initiative underscores the company’s commitment to long-term sustainable growth and solidifies its role as a pivotal growth engine within the M.K. Group.
A cornerstone of this mission is a substantial THB 6.5 billion investment earmarked for the development of the new Bangpakong Industrial Estate, a sprawling 1,000-rai site strategically located in Thailand’s Eastern Economic Corridor (EEC). This development is designed to generate consistent cash flow through a dual-engine approach of land sales and rental income. Furthermore, Prospect Development plans to enhance its capital recycling strategy by injecting assets worth up to THB 3.35 billion into PROSPECT REIT, with completion expected within the second quarter of 2025.
This strategic pivot comes as M.K. Group undergoes a significant corporate restructuring, decisively positioning its industrial property arm, spearheaded by Prospect Development, as a core business pillar for future expansion. The move reflects the increasing importance of the industrial property sector, as evidenced by PD’s performance last year, where it contributed a significant 47% of the group’s total revenue and an impressive 54% of its gross profit.
Mr. Vorasit Pokachaiyapat, Chief Executive Officer of M.K. Real Estate Development PCL, elaborated on the strategic importance of PD, stating, “Prospect Development is the flagship and key growth engine for M.K., especially in times when the residential property market is facing headwinds. 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.”
The expansion into the full-fledged Bangpakong Industrial Estate signifies a major leap for Prospect Development, showcasing its capabilities beyond developing and managing rental zones. This venture builds upon the sustained success of its Bangkok Free Trade Zone (BFTZ) projects, which have earned the trust of numerous top-tier industrial tenants. This strategic development aligns seamlessly with national investment strategies, as the company broadens its portfolio to support Thailand’s targeted industries.
Ms. Rachanee Mahatdetkul, Managing Director of Prospect Development Co., Ltd., highlighted the significance of this new undertaking. “Bangpakong Industrial Estate marks a milestone in expanding our industrial real estate capabilities while supporting Thailand’s national investment and economic strategies,” she said. “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.”
The Bangpakong Industrial Estate, situated in Khlong Tamru, Mueang Chon Buri District, Chonburi, is envisioned as an eco-industrial estate. This model emphasizes a harmonious balance between economic growth and social and environmental responsibilities. The project, currently undergoing its Environmental Impact Assessment (EIA), is anticipated to commence operations in 2027. Prospect Development has set an initial first-year land sales target of approximately 680 rai for the new estate.
Ms. Rachanee further commented on the investment landscape and the strategic advantages of the EEC. “In 2024, the eastern region attracted the highest investment value nationwide, totaling THB 573 billion. During Q1/2025, foreign investment in the EEC amounted to over THB 24.2 billion — 52% of total foreign direct investment,” she noted. “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.”
To steer its growth trajectory, Prospect Development is guided by its robust “E-E-C” Strategic Framework, which encompasses three core pillars: ENLARGE from Core Strengths, focusing on expanding the business from its proven strengths and expertise; EVOLVE with Flexibility and Adaptability, emphasizing the importance of staying agile to navigate dynamic market conditions; and COLLABORATE for Greater Impacts, which underscores the value of partnering across various dimensions for synergistic growth.
In terms of financial performance, Prospect Development recorded a total revenue of THB 898 million in 2024. Of this, THB 485 million was derived from rental and service income, marking a significant 21% year-over-year increase in rental revenue. Buoyed by this strong performance, the company is accelerating the development of its key existing projects. These include BFTZ 4 Bang Pakong and BFTZ 6 Bangna-Trad KM.19. For 2025, Prospect Development aims to maintain an impressive occupancy rate of over 90% across all its sites and secure new leases for over 200,000 square meters.
A key component of PD’s financial strategy involves the continued sale of assets to PROSPECT REIT to strengthen its capital base. As the REIT sponsor and property manager for PROSPECT REIT, Prospect Development plans to sell partial assets from BFTZ 1 Bangna-Trad KM.23, BFTZ 2 Theparak, and BFTZ 3 Bangna-Trad KM.19. These assets represent a total of 221,678 square meters of leasable space.
Ms. Aon-Anong Chaithong, Chief Executive Officer of Prospect REIT Management Co., Ltd., provided insights into the REIT’s plans. “PROSPECT REIT is preparing for its second capital increase and will invest in assets from PD worth up to THB 3.35 billion, with subscription scheduled for May 19 to 23, 2025,” she announced. “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 THB 10 billion by 2026.”
The comprehensive plans laid out by Prospect Development underscore its strengthened position as M.K. Group’s flagship company. More broadly, these initiatives highlight PD’s role as a major contributor to the ongoing development and future prosperity of Thailand’s industrial sector. The BFTZ portfolio includes nine projects such as BFTZ 1 Bangna-Trad KM.23 (Leasable Area 500,000 sq m), BFTZ 2 Theparak Road (Leasable Area 30,000 sq m), BFTZ 3 Bangna-Trad KM.19 (Leasable Area 110,000 sq m), BFTZ 4 Bang Pakong (Leasable Area 200,000 sq m), BFTZ 5 Wangnoi (Leasable Area 130,000 sq m), BFTZ 6 Bangna-Trad KM.19 (Leasable Area 81,000 sq m), BFTZ 7 Bangna-Trade KM.10 (Leasable Area 36,000 sq m), BFTZ 8 Theparak Road (Leasable Area 35,000 sq m), and BFTZ 9 Wangnoi (Leasable Area 35,000 sq m), offering both General Zone and Free Zone options in several locations.
About Prospect Development Company Limited Prospect Development Company Limited, a wholly owned subsidiary of M.K. Real Estate Development Plc. (“MK”), has been developing factories and warehousing for rent and property management under the “Bangkok Free Trade Zone” Brand for over 15 years. The company offers investors and business ownership high quality warehouses and factories for rent in strategic locations, complete with all necessary utilities. More information can be found at www.prospectd.com or https://www.facebook.com/prospectd.
#ProspectDevelopment #MKRealEstate #IndustrialEstate #EEC #BFTZ #PROSPECTREIT #IndustrialProperty #Investment #ThaiEconomy #Bangpakong #Chonburi #EcoIndustrialEstate #TransformativeGrowth
