CWT to reap $35-40m profit from latest warehouse project

CWT will develop a $135m warehouse at 20 Gul Way for AIMS AMP Capital Industrial REIT.

According to Kim Eng, this marks its debut as a warehouse developer for a non‐related third party.

Here’s more from Kim Eng:

In our view, it signals recognition for its capability in this field and suggests that CWT’s warehouse development business might be more sustainable than the market has believed.

Our View

Under the terms of the agreement, CWT will undertake to design and construct a warehouse at 20 Gul Way within the Jurong Industrial Estate. Upon completion, the company will sign a master lease agreement with AACI REIT for the property for 4‐5 years. This arrangement is not unlike the sale‐leaseback model it has with Cache REIT, except that CWT does not need to fund the project at all.

We see three benefits from this undertaking. First, CWT stands to reap a development profit estimated at $35‐40m, or about 30% of project cost. Second, there will be a handy revenue stream for its logistics business once the warehouse is completed in 28 months’ time. Finally, immediate availability of land with all the relevant permits from JTC to boot, with its own landbank untouched.

As we have repeatedly highlighted, CWT’s warehouse development business is an attractive one with high entry barriers. We believe it has been chosen for this project because of its ability to guarantee tenancy, given its market leadership position in logistics in Asia. That it can now develop on third‐party land signifies progress and implies that this business is more sustainable than the market believes.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia

Top News

'Christian Horner: Unfiltered' Comes to Singapore During F1 Week

The former Oracle Red Bull Racing Team Principal headlines a one-night-only live conversation on leadership, team culture and life at the pinnacle of Formula 1

Leisure & Entertainment

53 minutes ago

SC Capital acquires townhouse compound in Chung Hom Kok, Hong Kong