Global Logistic Properties (GLP) on Monday announced it would start the development of GLP Naruohama, a 1.2 million sq ft large-scale, multi-tenant logistics facility in Greater Osaka in Japan.

The total development cost is expected to be 15.7 billion yen (S$198.8 million), GLP said in a statement.

GLP Naruohama is the fifth development under GLP Japan Development Venture, a 50-50 joint venture between GLP and the Canada Pension Plan Investment Board that was formed in August 2011. The venture has an investment target of US$2.2 billion (S$2.8 billion) and has so far announced five projects for a total investment of 59 billion yen.

"This exciting new project is strategically located within Greater Osaka, one of Japan's biggest consumption areas," said Mr Yoshiyuki Chosa, president of GLP Japan.

"It is an attractive market for logistics, with the vacancy rate for large multi-tenant facilities currently standing at a low of 1.5 per cent," he added.

"Prospective tenants of GLP Naruohama will also be able to secure their workforce from a residential town close to our location."

The construction of GLP Naruohama is expected to begin in May next year and to be completed by June 2015, said GLP.

GLP is partly owned by the Government of Singapore Investment Corporation (GIC),