LOGOS enters JV to develop RM1.5b logistics hub in Shah Alam
06 Feb 2021
Asia-Pacific logistics property specialist LOGOS SE Asia Pte Ltd has entered into a joint venture (JV) with local partner Global Vision Logistics Sdn Bhd to develop a RM1.5 billion sustainable integrated logistics, warehousing and e-commerce hub on three pieces of land collectively measuring roughly 71 acres in Section 16, Shah Alam, Selangor.
The project, to be completed in phases, will consist of a total development area of 745,000 sq m (8.01 million sq ft) and a gross leasable area of 505,000 sq m (5.43 million sq ft), in five warehouse blocks.
In a press statement, Knight Frank Malaysia managing director Sarkunan Subramaniam says the logistics hub will be a feature asset within the group’s portfolio, with more than five million sq ft 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 Asia.”
Knight Frank Malaysia brokered the JV deal, which will be by way of a 60% share subscription by LOGOS into Global Vision Logistics — also the project’s special purpose vehicle — which will undertake the development.
“Given LOGOS’ extensive experience in managing and developing logistics facilities across nine countries within the region, we believe its participation will bring about advanced technical and operational know-how in developing high-grade multi-level warehouses, elevating the Malaysian logistics property landscape to the next level,” Sarkunan adds.
According to the statement, the multi-storey facility will be one of the largest one-stop logistics hubs in Malaysia upon its completion and is designed with the flexibility to cater for multiple tenants, featuring driveway, ramps and cross-docking features to facilitate logistics efficiencies and effective traffic management.
Knight Frank Malaysia executive director of capital markets Allan Sim notes that amid the pandemic, the investment by LOGOS in Malaysia is testament to the confidence of international logistics players in the growth of our industrial sector. “With this JV, LOGOS is expected to bring in a total FDI (foreign direct investment) in excess of RM1 billion to the state of Selangor. We are very excited at how this investment will spur further activities in the Klang Valley logistics market and the Malaysian economy as a whole.”
Sim also notes that the development is timely to capture and receive the increased enquiries and attention by multinationals looking to position their regional distribution centres in Malaysia. “With the government’s increased focus in Budget 2021 to position Malaysia as a global supply chain hub, coupled with MIDA’s (Malaysian Investment Development Authority) dedicated efforts to introduce tax incentives for Global Trading Centres targeted at regional distribution activities, we believe all these will be positive catalysts to attract further FDI into the country.
“This development is strategically positioned to be part of LOGOS’ regional chain of logistics facility network, providing the added advantage for our growing logistics market to leverage and tap LOGOS’ established pool of international big-name tenants,” Sim says.
The integrated project will include a drone landing pad, common canteen, workers’ dormitory, separation between pedestrian and heavy trucks movement and performance-based engineering for the fire-fighting system as well as a forklift travel path between the dock area and the warehouse.
Source: The Edge Markets