by Logos Breaks Ground on $147M Build-to-Suit Singapore Shed
DSV Pearl is near the Ayer Rajah Expressway in Jurong West (Image: Logos)
Industrial specialist Logos has begun construction of a Singapore warehouse for global logistics operator DSV, with the partners investing a total of S$200 million ($147 million) in the built-to-suit project.
Spanning 720,000 square feet (66,890 square metres) in the city-state’s southwestern region, the facility is owned and developed by Sydney-based Logos and designed to the requirements of Danish giant DSV. The project has a target completion date of mid-2025 and promises to set “new warehousing standards” in terms of automation and sustainability.
DSV’s first greenfield built-to-suit facility in Singapore — dubbed DSV Pearl — is also the second investment under the Pan Asia Core+ Venture, an open-ended private fund of Logos and Hong Kong-listed parent ESR, Logos co-CEO Trent Iliffe said Tuesday in a release. PACV previously invested in the Logos Siheung Logistics Centre in South Korea alongside Canadian insurer Manulife.
“This new warehouse and our partnership with DSV is a clear strategic fit for PACV and our business,” Iliffe said, noting the flagship fund’s focus on investing in sustainable Asia Pacific logistics opportunities.
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Situated on Tukang Innovation Drive in Jurong West’s Taman Jurong precinct, DSV Pearl aims to be the Copenhagen-listed group’s largest facility in Singapore when completed. The development’s location next to the Ayer Rajah Expressway is seen providing convenient access to infrastructure including Jurong Port, Changi Airport and the upcoming Tuas Megaport.
Logos co-CEO Trent Iliffe speaks at the DSV Pearl groundbreaking (Image: Logos)
The five-storey ramp-up warehouse will feature large floor plates of 136,000 square feet per floor with high ceilings and advanced warehouse automation systems to increase efficiencies in the storage, retrieval and processing of goods, according to the partners.
DSV Pearl targets LEED Gold and BCA Green Mark Platinum sustainability certifications, using solar panels to harness renewable energy to power the facility and onsite EV chargers and a smart lighting system to optimise energy consumption.
“DSV Pearl’s sustainability features are aligned with DSV’s commitment to achieve 50 percent reduction of absolute emissions by 2050 and contribute positively to Singapore Green Plan 2030,” said Xie Fang, managing director of DSV Solutions Singapore.
Shortage of Quality Space
Singapore’s logistics market heated up in June with Hillhouse Capital’s acquisition of a five-shed portfolio from SGX-listed ESR-Logos REIT for S$313.5 million ($232 million).
Once completed, the transaction at a 5.1 percent discount to book value will give Chinese private equity major Hillhouse the ownership of 1.87 million square feet of warehouse space in the Lion City.
Due to limited supply of quality space, rents for Singapore warehouses are forecast to grow by 3 to 5 percent in 2023, Savills said in a recent report, citing strong demand for modern and high-specification logistics space.