Australia-headquartered logistics property group LOGOS Group is partnering with Singapore-listed CSC Holdings to redevelop an existing industrial site in the city-state into a modern ramp-up warehouse for S$108 million ($76 million), according to an announcement.
The redevelopment forms part of LOGO’s newest Singapore fund – Singapore Logistics Ventures 2 – which closed with an investment capacity of S$1.2 billion ($846 million), the company said.
The fund, which is the group’s third venture in Singapore, seeks to acquire and develop high quality, modern logistics properties in the city-state.
LOGOS, a logistics company backed by ARA Asset Management, said the partnership will redevelop 2 Tanjong Penjuru Crescent, a four-storey industrial property, into a 46,000 sq m modern six-storey ramp-up logistics facility with office space, a cafeteria, and rooftop parking.
CSC has committed to a long-term pre-lease for the property on completion.
The industrial site – 2 Tanjong Penjuru Crescent – is located within Jurong Industrial estate near Singapore’s central business district and Jurong Lake District.
The redevelopment comes as the global coronavirus pandemic continues to affect market conditions around the world.
In Singapore, however, Stephen Hawkins, managing director of LOGOS’ South East Asia business, said investors and tenants continued to be interested in the logistics real estate sector “because it had continued to provide an essential service to the local community,” especially in the current market conditions.
“Located within one of Singapore’s key logistics hubs and offering close proximity to the seaports, 2 Tanjong Penjuru Crescent is a strategic addition to our portfolio as we look to expand and strengthen our specialist logistics real estate platform in the Singapore market,” Hawkins said.
LOGOS also assured that it is working within the local government’s Covid-19 lockdown regulations and that construction work on the facility will commence after the lockdown, subject to relevant planning and construction approvals.
In March, Singapore’s ARA Asset Management acquired a majority stake in LOGOS Group for a reported nearly $361 million. With the acquisition, LOGOS will operate as ARA’s exclusive platform for logistics assets globally.
Founded in 2010, LOGOS currently operates across eight countries in the Asia Pacific region. It has over 6 million sq m of property owned and under development, with a completed value of A$10 billion ($6.5 billion), across 20 ventures, including the Singapore-listed ARA LOGOS Logistics Trust.