Omega 1 Singapore is expected to be completed in 2028 (Image: CapitaLand Investment)
Singapore-based CapitaLand Investment has acquired a minority stake in Taiwanese builder Ally Logistic Property, with the companies announcing plans to develop an automated warehouse in the city-state at an estimated project cost of S$260 million ($202.6 million).
Known as Omega 1 Singapore, the five-storey hangar will be located at 19 Gul Lane in the Jurong Industrial Estate and will offer 71,000 square meters (764,238 square feet) of gross floor area once completed in 2028. The facility will be fully leased to ALP under a long-term master lease with built-in rental escalation, the companies announced on Thursday. in a press release.
CapitaLand Investment is developing Omega 1 Singapore through the CapitaLand Southeast Asia Logistics Fund, a Vintage vehicle 2022 invested by ALP, the Thai promoter Pruksa Holding and the Japanese Mitsui OSK Lines. ALP’s expertise in automation will help the asset management arm of Temasek-owned CapitaLand as it seeks to capture growth opportunities in Asia Pacific and the United States, said Patricia Goh, head of logistics and self-storage at CapitaLand Investment.
“APAC remains the fastest growing logistics region, with an expected compound annual growth rate of 15.2% between 2024 and 2030,” Goh said, citing figures from Grandview Research. “Structural factors such as growing digital consumption, aging populations, rising labor costs and supply chain streamlining continue to fuel demand for modern, automated logistics solutions across the region. »
Robo-Facility to increase
Situated on a 5.1 hectare (12.6 acre) site acquired for an undisclosed sum, Omega 1 Singapore will feature robotics, an automated storage and retrieval system and automated guided vehicles to support end-to-end inventory management, with a capacity to accommodate 60,000 pallet positions, according to the companies.
Patricia Goh, head of logistics and self-storage at CapitaLand Investment (Image: CapitaLand Investment)
The Singapore hangar follows the development of the fund of Omega 1 Bang Naa new project near Bangkok announced in 2024 and expected to become Thailand’s largest self-contained warehouse campus with 2.47 million square feet (229,471 square meters) of gross floor area when completed. Completion of Phase 1 of Automated Complex Objectives in mid-2026.
In September last year, the fund started its work a ready-made factory project in Quang Ninh province, northern Vietnam, and this 40,628 square meter facility is expected to be completed in the first half of this year.
CapitaLand Investment had first announced the CapitaLand Southeast Asia Logistics Fund in December 2022 with the support of ALP and Pruksa, with Mitsui OSK joins the vehicle two years laterat the same time as she took a stake in a company CapitaLand India.
CapitaLand Investment’s unspecified minority stake in ALP is intended to support the fund manager’s expansion into high-growth markets such as Australia, Japan and the United States, with ALP leveraging the Singapore company’s global resources to accelerate its own growth.
“ALP’s end-to-end capabilities, spanning real estate development, automation, and operations and maintenance, remain a key differentiator for us,” said Charlie Chang, CEO of ALP, who co-founded the company with Joseph Tsai. “Through our Omega platform, we integrate artificial intelligence, advanced robotics and proprietary technology to provide intelligent one-stop logistics solutions across the supply chain and reduce operational inefficiencies. »
Spaces large and small
CapitaLand Investment’s latest bet on hangars comes three months after the SGX-listed company announced a S$100 million expansion of its Additional Space Asia self-storage company.
The spending will fund the development of Extra Space Asia’s first build-to-suit project in Singapore – a 185,000 square foot site in Lion City’s Bedok district – and the acquisition of three facilities in Tokyo. The Singapore project marks the first sale of industrial land by the government’s Jurong Town Corporation for self-storage purposes and will expand Extra Space’s portfolio in Singapore to 13 properties with more than 1.5 million square feet of gross floor space.
CapitalLand investment teams up with Dutch pension fund manager APG in 2022 to commit an initial equity investment of S$570 million in Extra Space Asia, with the option to increase its investment up to S$1.14 billion (then $810 million). At that time, the Singapore-based mini-storage platform owned, leased and operated more than 70 facilities covering more than 1 million square feet of space across six Asian countries.
Note: This article has been updated to clarify ALP’s co-founders and details of CapitaLand Investment’s interest in Extra Space Asia.