SINGAPORE – CapitaLand Investment Limited (CLI) announced plans on January 8 to develop a $260 million automated logistics facility in Singapore.
It also announced a minority investment in smart logistics infrastructure company, Ally Logistic Property (ALP), which will lease the facilities.
CLI’s CapitaLand South-east Asia Logistics Fund (CSLF) has acquired a 5.1ha site at 19 Gul Lane in Jurong Industrial Estate to develop the project – Omega 1 Singapore.
The five-story facility is expected to be completed in 2028 and will have a gross floor area of 71,000 m². It will also be equipped with robots, as well as an automated storage and retrieval system capable of handling approximately 60,000 pallet positions.
Ms. Patricia Goh, CLI Southeast Asia Managing Director and Global Head of Logistics and Self-Storage, Private Funds, said the move is a strategic response to the demand for “modern and automated logistics solutions across the region”.
This demand, she explained, is driven by growth in digital consumption, an aging population, rising labor costs and supply chain streamlining.
Alongside this development, CLI acquired a minority stake in ALP, an Asia-based smart logistics infrastructure company.
Once Omega 1 Singapore is completed, the facility will be fully leased to ALP under a master lease agreement. The agreement includes an integrated rental increase, which CLI believes will provide CSLF investors with stable and growing income.
Over the past two years, CLI has deployed approximately $500 million in logistics development in Southeast Asia.
Following the Gul Lane transaction, the geographic composition of CSLF’s portfolio will change, with Singapore assets now representing 55 per cent of its total assets under management. The rest of the fund’s portfolio is located in Thailand and Vietnam.
The fund’s other major projects include Omega 1 Bang Na in Thailand, a 20-hectare smart logistics campus in Bangkok, with phase 1 expected to be completed in mid-2026.
The fund also has a ready-to-use factory in Song Khoai Industrial Park in Quang Ninh, Vietnam, which began construction in September 2025 and is expected to be completed by the first half of 2026.
CLI shares rose 2.16 percent, or six cents, to $2.84 on Jan. 8.
BUSINESS TIMES