Daily Newsletter

14 September 2023

Daily Newsletter

14 September 2023

BBX Logistics and PCCP JV to build logistics park in Florida

Construction works are set to partition the current three-building logistical centre into smaller spaces.

September 14 2023

US-based logistics development company BBX Logistics Properties has formed a joint venture (JV) with real estate finance and investment manager PCCP.

The JV has acquired approximately 40 acres of land north of Atlantic Avenue in Delray Beach, Florida, US.

It proposes to develop this land and to build up to 672,533ft² of logistical space into BBX Park at Delray, which is to be a three-building logistics centre.

The designs for BBX Park at Delray facilitate the partition of space into smaller units, with each of the three planned towers accommodating spaces less than 50,000ft².

The project’s initial phase is expected to develop a 200,000ft² building, with future plans to build two more buildings.

BBX president Mark Levy said: “We believe the acquisition of this strategic parcel of land is a monumental step forward for BBX Logistics Properties and PCCP towards our goal of serving the needs of the residents of Palm Beach County community.

“We believe BBX Park at Delray will redefine the standards of logistics facilities, and we are excited to embark on this journey with PCCP to deliver a space that will contribute to local employment and fuel economic growth.

“We want to thank the Palm Beach County Commissioners and County staff who worked so tirelessly with us.”

Additionally, BBX and PCCP plan to add eco-friendly measures into the development plans.

Construction works on the preliminary phase and site development are anticipated to begin in the first quarter (Q1) of next year.

Related to the formation of the JV with PCCP, BBX Capital Real Estate contributed $2.9m to the venture with PCCP and currently expects to grant an additional $2.5m to the venture, based on its expected share of the estimated total development expenditure.

South-East Asia Construction Market Dynamics

Per GlobalData analysis, the South-East Asia construction industry in 2023 is dominated by Indonesia, though the country will see a slowdown compared to 2022 due to elevated building material prices, weak commercial property demand, high interest rates and a softening of external demand. The construction industry in the Philippines is estimated to register a AAGR of 7.2% between 2024 and 2027, supported by the government’s focus on the development of the country’s rail and road transport and energy infrastructure.

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