GLP to develop a large-scale logistics facility in Greater Tokyo

Development cost estimated at $210m.

Singapore Mainboard-listed Global Logistic Properties Limited (GLP) announced that the development of GLP Zama, a new multi-tenant logistics facility in Greater Tokyo.

GLP Zama will be constructed on the site of a former automobile factory, originally acquired as part of a property portfolio in December 2011. The existing single-story building of 35,000 square meters (sqm) (376,000 square feet (sq ft)) has commenced demolition works and will be redeveloped into a five-story, modern logistics facility with an expected gross floor area of 130,000 sqm (1.4 million sq ft). The project is expected to be completed in July 2015, with the total development cost estimated to be JPY20.9 billion (US$210 million).

GLP Zama is the sixth development under the GLP Japan Development Venture (Venture), a 50/50 joint venture between GLP and Canada Pension Plan Investment Board that was formed in August 2011. To date, the Venture has committed a total investment of JPY79.6 billion (US$802 million).

Yoshiyuki Chosa, President of GLP Japan, said, "This exciting new project in Greater Tokyo is strategically located in the submarket of Zama, a thriving logistics hub that is home to a number of multi-national corporations and third-party logistics providers. Despite a high level of demand in the area, the supply of modern facilities is scarce and attractive land parcels hard to come by. The uniquely positioned site at GLP Zama will be completely redeveloped as a large-scale facility with state-of-the-art, innovative features, providing our customers with the perfect solution in the region.”

The project is GLP’s seventh facility to be located in Kanagawa prefecture, a major distribution market in Greater Tokyo. GLP’s four existing properties in the area have a lease ratio of over 99%, while GLP Atsugi and GLP Ayase, also under the GLP Japan Development Venture, are under development.

GLP Zama will be designed to the highest standards of safety and innovation. The facility will offer best-in-class functionality and advanced features such as a seismic isolation structure to ensure customers’ business continuity.

Here are the specifications for GLP Zama:

Planned development site. GLP Zama is situated in the Greater Tokyo region, providing strong accessibility to the Yokohama port, central Tokyo and Tokyo bay area. It is strategically located near the major national road route 246 and the “Yokohama Machida Interchange” of Tomei Expressway which connects Tokyo with Western Japan. It is also situated in a residential area, facilitating employee recruitment for customers at the facility.

Characteristics of the facility. GLP Zama will be a modern, multi-tenant logistics facility consisting of five floors above ground, with double rampways allowing truck access to every floor.

Securing business continuity at all times. GLP Japan places the utmost priority on adopting advanced business continuity measures in its facility planning and management. GLP Zama will provide features such as a seismic isolation structure to ensure safety and security and provide business continuity to customers at all times. The facility will also play an important role in restoration and rehabilitation of the area in the event of a disaster.