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LOGOS' first venture in Malaysia to deliver the largest logistics hub in Asia

PETALING JAYA (Jan 19): One of Asia Pacific’s leading logistics real estate specialists LOGOS has entered into a joint venture with a local partner to develop a sustainable integrated logistics, warehousing and e-commerce hub on three pieces of land collectively measuring approximately 71 acres in Section 16, Shah Alam, Selangor.

The joint venture transaction brokered by Knight Frank Malaysia (Knight Frank), will be by way of 60% share subscription by LOGOS into the project special purpose vehicle – Global Vision Logistics Sdn Bhd which will undertake the development.

The development which will be completed in phases, will consist of a total development area of 745,000 sq m and a gross leaseable area of approximately 505,000 sq m spanning across five warehouse blocks.

Knight Frank Malaysia managing director Sarkunan Subramaniam said that the Knight Frank deal is the largest ever development project in terms of square footage embarked by the group across the Asia region.

“Upon completion, the over 5 million sq ft logistic hub will be a feature asset within the group’s portfolio. Given LOGOS’ extensive experience in managing and developing logistics facilities across nine countries within the region, we believe their participation will bring about advance technical and operational know-how in developing high-grade multi-level warehouses, elevating the Malaysian logistics property landscape to the next level,” said Sarkunan in a statement today.

The multi-storey facility which will be one of the largest one stop logistics hubs in Malaysia upon its completion, and is designed with the flexibility to cater to multiple tenants, featuring driveway, ramps and cross-docking features to facilitate logistics efficiencies and effective traffic management.

Furthermore, it will also incorporate a drone landing pad, common canteen, workers dormitory, separation between pedestrian and heavy trucks movement and performance-based engineering for fire- fighting system as well as an ideal forklift travel path between dock area and the warehouse depth design.

Meanwhile, Knight Frank Malaysia executive director of capital markets Allan Sim (pictured) added that even amidst the pandemic, the investment by LOGOS into Malaysia is a strong testament and mark of confidence by international logistics players in the growth of our industrial sector.

“With this joint venture, LOGOS is expected to bring in a total foreign direct investment (FDI) in excess of RM1 billion to the state of Selangor. We are all very excited with the prospects of how this investment will spur further activities for the Klang Valley logistics market and the Malaysian economy as a whole,” said Sim.

He added that this development is timely to capture and receive the increased enquiries and attention by multinationals looking to position their regional distribution centres in Malaysia.

“With the government’s increased focus in the National Budget 2021 to position Malaysia as a global supply chain hub, coupled with Malaysian Investment Development Authority’s dedicated efforts to promote new tax incentives such as the Global Trading Centre targeted at regional distribution activities, we believe all these will be positive catalysts to attract further FDI into the country,” Sim concluded.

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