PROSPECT REIT Launches New Units to Fund BFTZ 4 Expansion

PROSPECT REIT is preparing to launch its third capital increase to fund a fifth additional investment in Bangkok Free Trade Zone 4 (BFTZ 4) in Bang Pakong district, Chachoengsao province. The investment will take the form of long-term leasehold rights in 31 completed factory and warehouse buildings comprising 101 units: 18 completed warehouses with 58 units, 5 completed factories with 7 units, 7 small-scale completed factories with 34 units, and 1 built-to-suit building with 2 units, totaling 187,949 square meters of leasable space.

The portfolio will be divided into 153,788 square meters in the Free Zone area where tenants receive various tax benefits, and 34,161 square meters in the general business zone, spread across more than 202 rai of land. Lease contracts are set for 30 years from commencement, with an option to renew for another 30 years, which will increase PROSPECT REIT's average lease tenure to approximately 28 years from the current 15 years.

Prospect Development, as co-shareholder of BFTZ 4's owner, will guarantee minimum rental income for unleased spaces at 170 baht per square meter monthly for two years from the REIT's investment date, ensuring revenue stability. The BFTZ 4 project benefits from strategic location near ports and airports, accommodates over 80 percent free trade zone space, and features upgraded infrastructure including high-voltage electrical systems and high-speed communications networks to attract supply chain operators.