ESR Breaks Ground on Singapore Shed With Japanese Partners Tokyu Land, Hulic

Hong Kong-listed industrial specialist ESR has begun construction of a multi-storey warehouse and automated container depot in Singapore alongside a quintet of Japanese co-investors.

The development of Sunview Logistics & Container Hub in western Singapore’s Jurong area brings together a consortium including Tokyo-based builders Tokyu Land and Hulic, ESR said in a release. The complex will span 143,000 square metres (1.5 million square feet) of gross floor area when fully operational in 2027, making it one of the largest such facilities in the city-state, according to the Warburg Pincus-backed company.

The Sunview Hub investor group also includes Nishimatsu Construction, Fuyo General Lease and fund manager Risa Partners, in collaboration with Singapore-based TRI Investment Management. The project near Tuas Mega Port and Tuas Checkpoint is positioned to take advantage of the country’s status as a supply chain hub and magnet for foreign investment.

“With Tuas Mega Port set to become the world’s largest fully automated terminal and container traffic on the rise, the demand for next-generation logistics facilities will continue to grow in tandem with Singapore’s role at the heart of global trade,” said ESR Southeast Asia head Jai Mirpuri.

Anchor Customers

Sunview Hub is built-to-suit for its two anchor customers, container haulage and yard operator Allied Container Group and global 3PL operator CEVA Logistics. The investment in the project includes a S$50 million ($38.6 million) commitment from Allied for integration of an automated container storage retrieval system with capacity to store 16,000 twenty-foot equivalent units.

ESR said the anchor clients will leverage next-generation technology and automation to increase efficiency and enhance sustainability — including tapping into one of Singapore’s largest rooftop solar systems at 7 megawatts — to support their continued growth.

CEVA already boasts two fully automated warehouses nearby, and Sunview Hub is set to raise the French giant’s total footprint to 370,000 square metres across 18 sites in Singapore, making it the second-largest contract logistics operator in the country.

The development of Sunview Hub, featuring a two-storey automated container depot and a six-storey warehouse on a 72,000 square metre land parcel, will boost ESR’s portfolio to over 60 assets in Singapore, the company said.

Rental and Price Growth

Jurong Town Corporation, which regulates Singapore’s industrial property development, reported that its JTC All Industrial rental index marked an 18th straight quarter of growth in the January-March period, up 0.5 percent compared with the prior three months.

JTC’s price index saw quarterly growth of 1.5 percent, slowing from a 2 percent rise in the previous quarter to reach its highest level since the fourth quarter of 2015, implying a 25.1 percent increase from its last trough in the third quarter of 2020, according to Colliers.

“Singapore’s overall value proposition of a proactive government — offering companies incentives and support, efficient infrastructure and a skilled talent pool will ensure that it remains an attractive hub for industries to operate and not be too adversely impacted by shifts in supply chains,” said Nicolas Menville, executive director and head of Singapore-based industrial clients at the consultancy.