CLI fund buys 5-hectare Jurong site to build S$260 million automated logistics facility

71,000 sq m facility set for completion in 2028; CLI also takes minority stake in smart logistics firm Ally Logistic Property

CapitaLand Investment Limited (CLI) on Thursday (Jan 8) announced plans for its regional fund to develop a S$260 million automated facility in Singapore.

It also announced a minority investment in smart logistics infrastructure company, Ally Logistic Property (ALP), which will lease the facility.

CLI’s CapitaLand South-east Asia Logistics Fund (CSLF) has acquired a 5.1-hectare (ha) site at 19 Gul Lane in the Jurong Industrial Estate to develop the project – Omega 1 Singapore.

The five-storey facility is set to be completed in 2028 and will have a gross floor area of 71,000 square metres. It will also be equipped with robotics, as well as an automated storage and retrieval system capable of handling about 60,000 pallet positions.

Patricia Goh, CLI’s chief executive officer of South-east Asia and global head of logistics and self-storage, private funds, said that the move is a strategic response to demand for “modern, automated logistics solutions across the region”.

This demand, she said, has been driven by growth in digitally enabled consumption, an ageing population, rising labour costs and supply chain rationalisation.

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Concurrent with the development, CLI has acquired a minority stake in ALP, a smart logistics infrastructure firm based in Asia.

Upon completion of Omega 1 Singapore, the facility will be fully leased to ALP under a master lease agreement. The deal includes built-in rent escalation, which CLI said will provide CSLF investors with stable and growing income.

Over the past two years, CLI has deployed about S$500 million into logistics developments across South-east Asia.

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Following the Gul Lane transaction, the geographical composition of CSLF’s portfolio will shift, with Singapore assets now accounting for 55 per cent of its total assets under management. The remainder of the fund’s portfolio is located in Thailand and Vietnam.

The fund’s other major projects include Thailand’s Omega 1 Bang Na, a 20-ha smart logistics campus in Bangkok, with Phase 1 expected to complete in mid-2026.

The fund also has a ready-built factory at Song Khoai Industrial Park in Quang Ninh, Vietnam, which broke ground in September 2025 and is targeting completion by the first half of 2026.

Mitsui OSK Lines (MOL) also announced on Thursday that it is investing in the development of Omega 1 Singapore.

The investment has been made through its existing interest in CSLF, which MOL invested in Omega 1 Bang Na and the development of a business park in Chennai, India, in 2024.

The shipping company said its investment aligns with the Blue Action 2035 management plan, under which it is reforming its business portfolio.

As part of this strategy, the group has been expanding its logistics and industrial business, particularly through the growth of its logistics infrastructure segment, with a shift to a global business structure.

Shares of CLI rose 0.7 per cent to close S$0.02 higher at S$2.78 on Wednesday.

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