GLP has secured a strategic land parcel for long-term logistics facilities development in Greater Tokyo. GLP Sagamihara will be developed in phases and ultimately provide over 655,000 sq m of total gross floor area across six buildings. GLP expects to commence the first phase of construction in 2020 following a sale-and-leaseback arrangement with the seller. The total investment cost of GLP Sagamihara is JPY133bn. GLP intends to undertake this development within its fund management platform.
Sagamihara has emerged as a major logistics hub driven by a lack of quality logistics space and available land parcels in metropolitan Tokyo. Market absorption in this sub-market has been strong, with two of GLP’s recent developments in the area – GLP Atsugi II and GLP Ayase – fully pre-leased approximately a year prior to completion.
Yoshiyuki Chosa, President of GLP Japan, said, “The size of the uniquely positioned site allows layout flexibility to cater to different customer segments including cold storage, manufacturing and R&D.”
Source: Global Logistic Properties