Logistics giant and real estate fund manager GLP Japan will break ground in February 2020 on what will be one of Japan's largest logistics facilities.
Located in the city of Sagamihara in Kanagawa Prefecture, just west of Yokohama, GLP Alfalink Sagamihara will have a gross floor area of about 650,000 sq. meters. The massive logistics park will comprise five buildings, along with a common-use building, and cost 140 billion yen ($1.3 billion), including purchase of the land.
The park will join a number of other logistics facilities in the area. It is strategically located along National Route 129, which shares junctions with major expressways nearby.
GLP purchased the land from Caterpillar Japan in December 2016.
The phased development will kick off in February 2020, starting with construction of the six-story GLP Alfalink Sagamihara 1 building and Ring, a circular two-story common-use structure. Total gross floor area of the two buildings will be 306,000 sq. meters, with completion slated for August 2021.
Sagamihara 1 features an L-shaped design with three ramp-ways. It will adopt a seismic-isolation structure and have a truck terminal on the sixth floor.
Ring with encircle a park-like area, and contain a restaurant, convenience store, nursery, gym and coworking space with cafe. It will connect to the other five buildings via a pedestrian deck, with separate access points for pedestrians and vehicles.
The next phases of construction will be for GLP Alfalink Sagamihara 2 and GLP Alfalink Sagamihara 3, both six-story buildings with the same seismic isolation characteristics as Sagamihara 1.
Sagamihara 2 will have a gross floor area of 158,000 sq. meters. Construction is planned to start in May 2021, with completion scheduled for November 2022.
Construction of Sagamihara 3, which will have a gross floor area of 90,000 sq. meters, will start in August 2022, with completion planned for sometime in February 2024.
The other two buildings in the park, Sagamihara 4 and Sagamihara 5, will each have a gross floor area of 50,000 sq. meters and be four-stories high. Construction will be from February 2023 to February 2024.
GLP has already received inquiries from a large number of prospective tenants, who may request alterations to the floor plans to accommodate their operations.
One of GPS's investment funds, GLP Japan Development Partners III, has earmarked about $5.6 billion for the project. The fund counts the Canada Pension Plan Investment Board and a number of other global investors as clients.
Alfalink is GLP Japan's new brand of logistics facilities. After the Sagamihara park, similar facilities are planned for the Chubu and Kansai areas.
This report first appeared in Nikkei Real Estate Market Report on November 28, 2019.