KPNREIT strategizes to survive the office glut, demolishing KPN buildings to accommodate the BTS Skytrain and diversifying into rental storage units.

KPNREIT is adjusting its business strategy for 2569 to cope with the increasingly fierce competition for office tenants in Bangkok. The plan includes renovating the KPN Tower in the Rama 9 area, anticipating the opening of the Orange Line MRT which will connect the east and west sides of Bangkok. Simultaneously, the trust is diversifying its investment portfolio by shifting funds into 25-year leasehold rights in the central business district for storage facilities, aiming for a balanced long-term revenue stream.

17 July 2569 – Mr. Rungyot Chantaphasa, Chief Executive Officer of Blue Whale Asset Co., Ltd., as the manager of KPNREIT. It was revealed that the trust's operational plan for 2569 is beginning to show tangible results, focusing on improving and enhancing the efficiency of core assets to cope with intense competition in the office building market. This is coupled with diversifying investments into alternative assets with potential, creating a balance between managing existing assets and seeking opportunities to generate new revenue in the future, which is a long-term foundation for the business.

For its commercial real estate plans, the trust is preparing to completely revamp the structure and space allocation within KPN Tower on Rama 9 Road. This includes improvements to the lobby, entrances, common areas, and surrounding landscape, along with diversifying the leased space to attract co-working spaces, fitness centers, shops, restaurants, and other services. The renovation is expected to be completed by 2569.

This decision to renovate the office building... This development is in preparation for the opening of the Orange Line MRT in 2570, a crucial transportation network connecting the eastern and western parts of Bangkok. The trust assesses that this factor will be a key driver in enhancing the potential of the Rama 9 area, transforming it into a new economic, transportation, and employment hub.

“The revamped KPN Tower reflects KPNREIT’s vision of transforming a building into more than just a workspace, but a hub connecting people, businesses, and lifestyles. It will create new value for the Rama 9 area and grow alongside the future development of the city.” Mr. Rungyot outlined the concept of transforming core assets.

In addition to renovating office buildings, KPNREIT is also diversifying its reliance on office rental income by investing in a 25-year long-term lease on the i-Store Sukhumvit 71 project, a self-storage facility in the heart of Bangkok. This move aims to capitalize on the growing demand for storage space driven by urban growth.

The key drivers of the storage rental business stem from the limitations of living space in modern residences, coupled with the expansion of small and medium-sized enterprises (SMEs) and online retailers (e-commerce). The i-Store Sukhumvit 71 project has a strong advantage due to its diverse customer base and consistently high occupancy rates, which will significantly contribute to the stability and balance of the trust's cash flow.

“KPNREIT’s goal is not just to increase the size of its investment portfolio, but to create a high-quality portfolio with balanced income sources, appropriately diversified risk, and capable of growth in line with future economic trends. Enhancing the potential of existing assets coupled with investment in high-potential assets will be a crucial foundation for generating stable and sustainable returns for unit holders in the long term.” Mr. Rungyot concluded by outlining the future direction.

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