GLP to invest $1.1bn to build new logistics park in Japan
Singapore-based logistics company GLP has secured a land parcel to develop long-term logistics facilities in Sagamihara, Japan with an investment of about $1.1bn.
The facility, GLP Sagamihara, will be developed in phases with a total gross floor area of about 655,000 mt2 (7 million ft2) across six buildings.
The first phase of construction is expected to start in 2020 following a sale-and-leaseback arrangement with the seller. The company intends to use its fund management platform to construct the facility.
According to GLP, with lack of quality logistics space and availability of land parcels in metropolitan Tokyo, Sagamihara has emerged as a major logistics hub in the region.
GLP claims that in the recent times, there has been strong absorption in this sub-market, with two of its facilities in Atsugi and Ayase getting fully pre-leased nearly a year prior to their completion.
GLP Japan president Yoshiyuki Chosa said, “GLP Sagamihara has a strong leasing pipeline and is expected to complement GLP’s existing portfolio in the region. The team did a fantastic job securing land in a highly desirable area.
“The size of the uniquely positioned site allows layout flexibility to cater to different customer segments including cold storage, manufacturing and R&D.
"We are confident that with its strategic location, customer demand pipeline and industry-leading building specifications, GLP Sagamihara is well-positioned to be Japan’s best master-planned logistics park.”
By the end of September, GLP owned and operated a global portfolio of about 52 million mt2 (561 million ft2) offering services for domestic consumption. Globally, it serves more than 4000 customers which include manufacturers, retailers and third party logistics companies.
Image: GLP’s proposed facility in Sagamihara, Japan. Photo: Courtesy of GLP Inc.