Leading ‘Total Logistics Solutions Provider’ JWD is going to recognize additional revenue from sale of four cold storage and warehouse units to AIMIRT, which will contribute to dramatic q-o-q growth in Q4/60. Its management aims to use the sale proceeds to finance expansion in Thailand and other Asean countries and create growth, and to sell freehold or leasehold assets in another 2,800 sq. m. cold storage units to AIMIRT in the future.
Mr. Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer (CEO) of JWD InfoLogistic Public Company Limited (JWD), a leading ‘Total Logistics Solutions Provider’, revealed that JWD plans to sell a number of its assets to AIM Industrial Growth Freehold and Leasehold Real Estate Investment Trust (or AIMIRT), and expects to receive at least 1,450-1,600 million THB revenue which will dramatically improve the results in Q4/60 compared to the previous quarter
The assets included four freehold cold storage and document storage units that were owned through JWD subsidiaries: i) two cold storage units, together with land and freehold properties at Pacific Cold Storage (Mahachai, Samut Sakhon); ii) one cold storage unit, together with land and freehold properties at JWD Pacific (Suwinthawong Road, Chachoengsao); and iii) one document storage warehouse unit, together with land, at DataSafe (Suwinthawong Road, Chachoengsao). JWD will lease back these cold storage and warehouse units to continue the warehousing business for 10 years which will enable the company to have similar service areas and revenue streams.
JWD will apply the sale proceeds for expansion of its logistics business in Thailand and other Asean countries (e.g. Indonesia, Vietnam, Cambodia, Laos, Myanmar, etc.) to create growth and achieve the ambitious goal as the leader of Total Logistics Solutions Providers. It has adopted the policy to grow both organically and through acquisition, and it is confident that the expansion will contribute to a decent profitability level that could justify the agreed cost of leasing the cold storage and warehouse units to AIMIRT.
“In the future, we will raise more funds by selling more assets to AIMIRT. This will help us in maintaining a sound debt-to-equity ratio. We have granted AIMIRT the right to invest in freehold or leasehold properties in additional cold storage units (approx. 2,800 sq. m.) at JWD Pacific (Suwinthawong Road). The funds raised will be used to finance future expansion and produce new corporate growth”, said he.