CapitaLand Investment Limited (CLI) has confirmed two major developments designed to grow its logistics presence across the Asia Pacific region. The global asset manager is taking a minority stake in Ally Logistic Property (ALP), a specialist in smart infrastructure, while simultaneously launching a new high-tech development in Singapore.

The move follows a period of intense activity for the firm. Over the last two years, CLI has put roughly S$500 million into logistics projects across Southeast Asia. The latest venture involves the CapitaLand Southeast Asia Logistics Fund (CSLF) acquiring a 5.1-hectare plot at 19 Gul Lane. The site, located in the Jurong Industrial Estate, will house OMEGA 1 Singapore, a five-storey facility with a total development cost of S$260 million.

The Jurong area has seen remarkably high demand, with occupancy rates staying above 90 per cent for a decade and reaching 96 per cent by the end of 2024. Once finished in 2028, the 71,000-square-metre building will hold 60,000 pallet positions. ALP will take on a long-term master lease for the site, which includes fixed rent increases to ensure steady returns for investors.

Ms Patricia Goh, CEO of Southeast Asia and Global Head of Logistics at CLI, noted that the region is the world’s fastest-growing logistics market. “APAC remains the fastest-growing logistics region, with a projected compound annual growth rate of 15.2 per cent between 2024 and 2030. Structural drivers such as the growth in digitally enabled consumption, ageing population, rising labour costs and supply chain rationalisation continue to fuel demand for modern, automated logistics solutions across the region,” she said.

The OMEGA 1 facility will utilise advanced robotics and automated storage systems. It is designed to meet the Green Mark GoldPLUS environmental standard. Mr Charlie Chang, Co-founder and CEO of ALP, said: “We are excited to extend our longstanding relationship with CLI through this strategic investment. ALP’s end-to-end capabilities, covering real estate development, automation, as well as operations and maintenance, remain a key differentiator for us. Through our OMEGA platform, we integrate artificial intelligence, advanced robotics and proprietary technology to deliver one-stop smart logistics solutions across the supply chain and reduce operational efficiencies. As we embark on our ambitious expansion across APAC and beyond, we look forward to leveraging CLI’s global resources to accelerate our next phase of growth.”