LOGOS enters first Malaysian JV to deliver RM1.5b logistics hub
19 Jan 2021
Asia-Pacific logistics property specialist LOGOS SE Asia Pte Ltd has entered into a joint venture (JV) with a local partner, Global Vision Logistics Sdn Bhd, to develop an RM1.5 billion sustainable integrated logistics, warehousing and e-commerce hub on three pieces of land collectively measuring approximately 71 acres in Section 16, Shah Alam, Selangor.
“The multistorey facility, which will be one of the largest one stop logistics hubs in Malaysia upon completion, is designed with flexibility to cater to multiple tenants, featuring a driveway, ramps and cross-docking features to facilitate logistics efficiencies and effective traffic management,” according to Knight Frank’s press release.
To be completed in phases, the development will consist of a total development area of 745,000 sq m (8.01 million sq ft) and a gross leasable area of approximately 505,000 sq m (5.43 million sq ft) spanning across five warehouse blocks.
Knight Frank Malaysia managing director Sarkunan Subramaniam said that the over five million sq ft logistic hub will be a feature asset within the group’s portfolio upon completion. “We are proud to share that LOGOS’ first venture into the Malaysian industrial market is represented by the largest-ever development project in terms of square footage embarked by the group across the Asia region.”
Knight Frank Malaysia executive director of capital markets Allan Sim noted that the JV is expected to bring in total foreign direct investment (FDI) in excess of RM1 billion to the state of Selangor. “Even amid the pandemic, the investment by LOGOS in Malaysia is a strong testament and mark of confidence by international logistics players in the growth of our industrial sector.”
Knight Frank Malaysia brokered the JV transaction, which will be by way of a 60% share subscription by LOGOS into Global Vision Logistics — also the project’s special purpose vehicle — that will undertake the development.
The integrated project will also incorporate a drone landing pad, common canteen, workers’ dormitory, separation between pedestrian and heavy truck movement, and performance-based engineering for the fire-fighting system as well as a forklift travel path between the dock area and the warehouse depth design, the statement added.
Source: The Edge Markets