San Francisco—July 22, 2013—Menlo Worldwide Logistics, the global logistics subsidiary of Con-way Inc., and Mapletree Logistics Trust (MLT), the first Asia-focused logistics real estate investment trust listed in Singapore), jointly announced that Menlo has signed a binding commitment to lease 48,700 square meters at Mapletree Benoi Logistics Hub.
The agreement represents Menlo’s latest expansion in Singapore and elevates Menlo to MLT’s largest tenant, with leased warehouse space across four properties in Singapore and Hong Kong.
MBLH is MLT’s first redevelopment project in Singapore. Scheduled for completion in the fourth quarter of 2013, the modern five-story ramp-up facility has received strong interest from major third-party logistics service providers. Including this commitment by Menlo, which accounts for 55 percent of MBLH’s total net leasable area, the development is now 75 percent pre-leased with the balance in advanced stages of negotiation.
“Mapletree is a strategic business partner who has been instrumental in supporting our growth objectives with quality warehousing facilities,” said Desmond Chan, managing director, South Asia for Menlo. “We are excited to expand this relationship as we continue to enhance our capabilities and resources for value-added logistics, warehousing and distribution services in Singapore and South Asia.”
The 10-year lease for the new property at MBLH increases to eight the number of facilities Menlo operates in Singapore providing dedicated and multi-client inventory storage and distribution management. Collectively, Menlo serves over 100 Singapore businesses and multi-national companies in sectors such as automotive, high-tech, consumer goods, industrial, aerospace and wine and spirits distribution. In addition to product storage, inventory management and distribution, Menlo intends to provide a number of high-value-added services from the Benoi property, including picking and packing operations, customized labeling and return management services.
Strategically located within the Jurong Industrial Estate, MBLH is in close proximity to Jurong Port and easily accessible to the city via major expressways. In addition, with its sizeable contiguous floor plates and direct vehicular ramp access to every floor, MBLH offers improved operational flexibility and efficiency to logistics service providers like Menlo. These enhanced features will enable them to provide more competitive and superior warehousing and logistics services to their customers. MBLH is also designed with sustainable green features that adhere to the Singapore Building and Construction Authority’s Green Mark GoldPlus rating criteria.
“The redevelopment of MBLH also demonstrates our ability to execute on MLT’s strategic priority of rejuvenating existing assets to maintain our competitive edge and optimise portfolio returns. When completed, MBLH will be transformed into a modern, quality warehouse with significantly improved building specifications. At the same time, it will yield a four-fold increase in gross floor area, from 22,500 square meters previously, to 92,500 square meters. We will continue to look out for asset enhancement or redevelopment opportunities to unlock value from our portfolio,” said Ng Kiat, Mapletree CEO.