Singapore’s Equalbase Leases Entire Johor Shed to Logistics Giant GXO

Singapore-headquartered Equalbase has signed up GXO Logistics as the sole tenant of a 720,000 square foot (66,890 square metre) warehouse under construction in Malaysia’s Johor Bahru.

Warehouse 2 at 103 Degrees Free Commercial Zone Phase I will serve as a central hub for GXO in the region, the companies said Monday in a release. NYSE-listed GXO manages outsourced supply chains and warehousing for clients in more than 30 countries.

Warehouses 1 and 2 of Phase I are now fully leased at 103 Degrees, a $1.7 billion joint venture of Stonepeak-backed builder Equalbase and Malaysian conglomerate Sunway Group, with the complex expected to provide 5 million square feet upon completion.

“We’re thrilled to welcome GXO to 103 Degrees,” said Equalbase CEO Nicholas Bischoff. “This isn’t just a warehouse — it’s a Grade A hub built for operational excellence and future growth. Partnering with GXO, a leader in innovation and sustainability, reflects our shared commitment to the next generation of logistics infrastructure.”

Opening Next Year

Equalbase announced 103 Degrees in November 2023 as the company’s fourth project in Malaysia. The tie-up with Sunway came after the company formed a joint venture in September 2022 with US infrastructure private equity firm Stonepeak to develop logistics assets across Asia. Stonepeak also took an equity stake in the developer under the agreement.

Named after Johor’s longitude, 103 Degrees is located 5 kilometres (3 miles) from the Malaysia-Singapore Second Link bridge connecting the two Southeast Asian countries in Sunway City Iskandar Puteri township.

Phase I of the project, spanning 2.2 million square feet across three carbon-neutral warehouses, is expected to start operations in the first quarter of 2026, according to Equalbase’s website. German logistics group Schenker agreed to lease Warehouse 1 of Phase I in March of this year.

Jorge Guanter, GXO’s president for the Americas and Asia Pacific, said the signing of a long-term lease at Warehouse 2 represents an expansion of the US company’s business in the region.

“Along with its advanced logistics capabilities and superior safety and sustainability credentials, the site allows GXO to offer valuable free trade zone benefits to customers that need to import, store and export goods without incurring customs fees,” Guanter said. “Our new facility gives brands the flexibility and value they need while taking the complexity out of their global supply chain.”

Moment in the Sun

Sunway made headlines last week when it announced plans to buy Hongkong Land’s primary Singapore subsidiary for S$739 million ($579 million).

The acquisition of MCL Land provides the Malaysian builder with the chance to take over a respected residential builder in Southeast Asia’s most expensive housing market while also expanding in its home market.

Earlier this month, a joint venture of Sunway and Singapore’s Sing Holdings was revealed as the top bidder for a residential site in northeastern Singapore.

The S$623.9 million ($483.9 million) offer for the second Chuan Grove site in the Serangoon area translated to S$1,331 ($1,032) per square foot of accommodation and topped a runner-up bid of S$606.1 million placed by China’s state-backed COLI.

The plot within walking distance of Lorong Chuan MRT station on the Circle Line can yield 505 homes. The same Sing-Sunway tandem was awarded the adjoining first Chuan Grove site in July for S$1,376 per square foot over six competing bids, with that larger parcel capable of furnishing 555 homes.