GLP to Develop 3 Large-Scale Logistics Facilities in Greater Tokyo
- Jan 21, 2014
Global Logistic Properties Ltd. (GLP) has recently announced it would begin construction on three major multi-tenant logistics facilities in Greater Tokyo.
In the submarket of Saitama, where the vacancy rate for this type of development is as low as 4.3 percent, the company will be developing two projects, GLP Sayama Hidaka I and II.
At an estimated cost of $179 million (JPY 18.7 billion), the new facilities will offer a combined floor area of approximately 1.4 million square feet. Completion is scheduled for December 2015 and May 2016, respectively. Sustainable features will include a strong soil foundation, a state-of-the-art seismic isolation structure, as well as the use of LED lighting and thermal insulation materials.
GLP has also announced plans to develop a 775,000-square-foot logistics facility in Chiba Prefecture, about 18 miles from downtown Tokyo. Called GLP Yachiyo, the project entails a total investment of $106 million (JPY 11.1 billion).
Scheduled for completion in October 2015, the facility will offer easy access to the Greater Tokyo Metropolitan area – a population center of more than 13 million people – through the Chiba Kita Interchange of Higashi Kanto Expresway.
“GLP Yachiyo is strategically located in Chiba Prefecture, one of the most important distribution regions in Greater Tokyo. The development offers a host of sustainable features, which is becoming a key competitive advantage in today’s market,” Yoshiyuki Chosa, president of GLP Japan, said in a news release. “Customer demand in Japan for modern logistics remains strong and we see significant opportunity given attractive fundamentals, our market-leading platform and strong local team.”
All three projects are being developed under the GLP Japan Development Venture, a 50/50 joint venture between GLP and the Canada Pension Plan Investment Board.
Formed in August 2011, the venture has reached an investment capacity of $2.2 billion and has committed a total investment of $1.1 billion (JPY 112.9 billion) to date.
With a portfolio of241 million square feet, GLP is the leading provider of modern logistics facilities in China, Japan and Brazil. The company’s properties are strategically located across 62 cities, forming an efficient logistics network that serves about 700 customers.