JLL closes sale-leaseback deal of Precision Global's manufacturing facility in Thailand

JLL announced today that it has closed a sale & leaseback deal of a 12,000-sqm manufacturing facility at WHA Eastern Seaboard Industrial Estate (WHA ESIE) in Rayong.

Represented by JLL, Precision Global, a global leader in the manufacturing of aerosol valves, sold the asset to AIM Industrial Growth Freehold & Leasehold Real Estate Investment Trust (AIMIRT) and has committed to leasing back on a long-term basis.

Khun Krit Pimhataivoot, Country Head & Head of Capital Markets, JLL Thailand, said "A sale-leaseback arrangement represents a strategic investment approach that can create a mutually beneficial opportunity for both the seller and the buyer. By selling its asset and leasing it back from the buyer, Precision Global has obtained funds for reinvestment without disrupting business operations. For AIMIRT, the arrangement offers a stable, cash-flow-producing asset that generates immediate returns through lease payments."

According Precision Global, the transaction aligns with its asset-light strategy, enabling the firm to redistribute capital and reinvest in innovation and business expansion across its Asia-Pacific portfolio. The deal follows a series of successful sale and leaseback transactions Precision Global has completed in the region.

Mr. Thierry Bouan, CEO of Precision Global, said "This transaction reflects our confidence in Thailand as a key hub for our business and our determination to grow through innovation. The enhanced financial flexibility will allow us to invest further in developing products and capabilities that serve our global customers. JLL's professional guidance ensured a smooth process that fully supports our business objectives."

For AIMIRT, the acquisition of Precision Global's facility reflects its strategic focus on high-quality industrial assets in Thailand. AIMIRT continues to expand its portfolio, targeting industrial properties that deliver long-term value in Thailand's thriving market.

Khun Charasrit Atthawetaworawut, CEO of AIMIRT, said "The acquisition of Precision Global's Rayong facility aligns perfectly with our strategy to invest in high-performing industrial assets in Thailand. This deal provides stable returns and growth potential, underpinned by a strong tenant. We are thrilled to expand our portfolio with this strategic addition."

The sale and leaseback model is gaining momentum in Thailand's industrial and logistics sector

Industrial and logistics assets in Thailand remain attractive to both local and foreign investors, supported by strong infrastructure and the China+1 trend. JLL's market insights reveal that assets in key locations are highly sought after due to their strategic positioning, robust infrastructure, and proximity to major supply chains.

JLL's observations also show that the sale & leaseback model is gaining momentum in Thailand, particularly among manufacturers seeking to unlock capital while maintaining operational continuity, and investors looking for managed-risk assets in the country's robust industrial and logistics sector.

"With many uncertainties in the global economy and tight capital markets - despite declining interest rates in Thailand - we expect the sale & leaseback model to gain popularity as it offers win-win solutions for both occupiers and investors. Sale & leaseback allows manufacturers to liquidate real estate assets and refocus resources on their core business, while providing long-term stable returns for investors with capital to deploy," said Khun Krit from JLL

"The industrial and logistics asset class remains a hot sector for both local and foreign investors. We expect this trend to continue, supported by several key factors. Thailand's strategic location serves as a regional manufacturing and logistics hub, complemented by robust transportation infrastructure, including deep-sea ports and connectivity to key markets. Additionally, supportive government policies promote foreign investment, while the ongoing China+1 diversification trend continues to drive multinational companies to establish operations in Thailand, further strengthening the industrial and logistics sector," Khun Krit explained

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