PR89452

BANGKOK, May 11, 2021 /PRNewswire=KYODO JBN/ --

'World Food Valley' industrial estate is at the heart of Thailand's drive to be

a 'kitchen of the world' as well as one of the world's top food producers

Commits to invest US$ 55.5 million in further development of industrial estate

"Acquiring an industrial estate that is closely linked to the three power

plants in which we have also taken substantial stakes is another step forward

in the fulfilment of our strategy to create powerful synergies between Singha

Estate's multiple business platforms. It gives us great competitive strength as

well as creates a highly resilient business."

-- Mr. Chutinant Bhirombhakdi, Chairman, Singha Estate PCL

Singha Estate PCL (S), a leading Thai property investment and development

company listed on the Stock Exchange of Thailand, has signed a definitive

agreement to acquire from Boon Rawd Brewery Co., Ltd., 100 percent of the

shares of Park Industry Co., Ltd., which owns the 286-hectare World Food Valley

industrial estate in Ang Thong province in Central Thailand.

The share transfers are expected to take place in the third quarter of 2021.

The transaction's total value is approximately US$ 77.8 million, comprised of

US$ 16.4 million for the entirety of Park Industry's shares, priced at par

value, and a commitment to invest a further US$ 55.5 million in the development

of the industrial estate, as well as other costs.

Mr. Chutinant Bhirombhakdi, Chairman of the Board of Directors of Singha Estate

PCL, said, "Acquiring an industrial estate that is closely linked to the three

power plants in which we have also taken substantial stakes is another step

forward in the fulfilment of our strategy to create powerful synergies between

Singha Estate's multiple business platforms. It gives us great competitive

strength as well as creates a highly resilient business."

Mrs. Thitima Rungkwansiriroj, Chief Executive Officer, Singha Estate PCL, said,

"The combination of an industrial estate business and a power generation

business creates significant financial and operational benefits because

industrial estates are one of the largest consumers of power. The operations

inside the industrial estate create demand for the power generated by our three

power plants. And, because this industrial estate is focussed on food, there

will be demand by food processors for the food-grade steam that our power

plants also produce. At the same time, the power plants boost our recurrent

income and give us steady cashflow that reduces risks in cashflow fluctuation

from sales of industrial estate land."

She added, "Apart from being a great strategic fit, we see strong prospects in

the industrial estate sector in Central Thailand. The average occupancy rate of

industrial estates in Thailand was approximately 80% at the end of last year,

while the Central region enjoyed the highest occupancy rate at about 89%."

Mrs. Thitima added, "This industrial estate is also at the heart of Thailand's

drive to be a 'kitchen of the world' as well as one of the world's top food

producers. The location is highly strategic for those operating in the food

sector because it is in the middle of the country's food and raw material

supply chain for rice, dairy products, and poultry. It also has access to

abundant supplies of water because of its proximity to the Chao Phraya River."

The Thai Government has been supporting the development of the food processing

sector as part of its long-term policies. According to Thailand's Board of

Investment, applications for investment privileges in the agriculture and food

sectors were one of the fastest growing, and Thailand's Central region

accounted for around half of all Board of Investment applications in 2020.

The demand for land in industrial estates in Thailand is forecast to increase

once COVID-19 related foreign travel restrictions are eased.

Singha Estate PLC recently held its Annual General Meeting of shareholders on

Friday 23rd April at which shareholders approved the company's acquisition of a

30% shareholding in the three co-generation power plants located in the 'World

Food Valley' industrial estate with a total investment of US$ 44.7 million. The

first of the plants is an operational 123 megawatt (MW) combined cycle

co-generation power plant. The second and third plants, each with 140 MW

capacity, are greenfield operations that are currently under construction and

will enter into service in 2023.

In March 2021, Singha Estate said that it aims to triple annual revenues within

three years to around US$ 640 million and grow assets to US$ 2.57 billion.

For more information, please contact:

Investor Relations – Maysenee Ratnavijarn

Tel: +6692 417 5491

Email: IR@singhaestate.co.th

Note to the Editor

Singha Estate is developing its business across four, connected platforms to

secure dependable returns in an increasingly unpredictable local and global

business environment.  

Its first three platforms are comprised of residential property, commercial

property, and resorts and hotels.  It's fourth platform is new businesses that

complement its core property businesses, such as power generation, related

energy businesses, engineering services and other innovative services.

Singha Estate's commercial property businesses include 140,000 square metres of

commercial office and retail space contributing approximately 15% of its total

revenues in 2020.  It has 39 hotels and resorts with 4,600 keys across five

countries, contributing approximately 24% of revenues.  And, it has 23

residential development projects that include single-detached-houses,

townhouses, and condominiums under the Santiburi, The ESSE, and brands,

contributing 57% of its revenues.  

SOURCE:  Singha Estate

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   Caption: Thailand’s ‘Singha Estate’ acquires 286-hectare ‘World Food Valley’ industrial

estate