German logistics giant Schenker signs major lease at Sunway City’s Free Commercial Zone, boosting regional trade.

Deutsche Bahn’s logistics division Schenker has signed a landmark tenancy deal, securing an 830,000 sq ft warehouse at 103° in Sunway City Iskandar Puteri. The strategic location, co-owned by Equalbase and Sunway Group, is part of the Johor-Singapore Special Economic Zone (JS-SEZ). This move underscores Johor’s growing significance as a regional logistics hub, bridging Malaysia’s industrial ecosystem and Singapore’s global trade network.

Schenker, a division of Deutsche Bahn, has secured an entire warehouse spanning 830,000 sq ft in Johor’s Sunway City Iskandar Puteri, marking a major investment in Malaysia’s logistics sector. The lease agreement was signed with Equalbase, a Singapore-based real asset developer, which co-owns the 103° development in partnership with Sunway Group.

103° is the first Free Commercial Zone within the JS-SEZ, a key economic initiative aimed at enhancing cross-border trade between Malaysia and Singapore. Schenker’s strategic move highlights the growing appeal of Johor as a logistics and distribution hub, capitalizing on its proximity to Singapore and extensive industrial ecosystem.

Nicholas Bischoff, CEO of Equalbase, emphasized the long-standing partnership between Schenker and Equalbase, stating:

“Our collaboration with Schenker is built on innovation and sustainability. The tenancy agreement at 103° reflects our shared vision for next-generation logistics solutions.”

Sunway City’s 103°: A Game-Changer for Regional Logistics

Phase 1 of 103° spans 2.2 million sq ft across three warehouses, with Schenker’s facility being the largest. The entire four-phase project will exceed 5 million sq ft and is expected to launch in Q1 2026.

Equalbase describes 103° as a future-forward logistics hub, with features such as:

• Carbon-neutral infrastructure, aligning with global sustainability goals.
• Proximity to the Singapore-Malaysia Second Link Bridge (5km away), ensuring seamless trade flows.

Strategic connectivity to major transport corridors serving – ASEAN and global markets.
Catherine Soo, CEO of Schenker Singapore & Malaysia, described Johor as a vital logistics gateway, stating:

“Johor fuels regional growth, and Equalbase Sunway 103° presents a unique opportunity to develop the next mega logistics campus.”

Boosting Trade Between Malaysia and Singapore

Johor’s Free Commercial Zone status offers key incentives for logistics players, allowing them to optimize supply chain operations while benefiting from Malaysia’s lower operational costs and Singapore’s global market access.

“Schenker’s expansion demonstrates the confidence of global logistics players in Johor’s economic potential,” a spokesperson from Equalbase added.

The project also complements Malaysia’s broader goal of strengthening its industrial and logistics infrastructure, aligning with the government’s ASEAN trade expansion initiatives.

The Equalbase-Schenker deal marks one of the largest logistics investments in Sunway City, reinforcing Johor’s role as a rising hub for supply chain and warehousing. The involvement of Sunway Group, Equalbase, and Schenker signals the growing demand for large-scale logistics real estate in Malaysia.

Additionally, the Malaysian government’s push for foreign direct investment (FDI) in logistics and manufacturing has made Johor an attractive destination for multinational corporations looking to streamline distribution networks.

Experts predict that 103° will serve as a model for future logistics hubs, integrating green technology, automation, and AI-driven supply chain management.

Schenker’s major warehouse lease in Sunway City Iskandar Puteri highlights Johor’s emergence as a key logistics hub in Southeast Asia. With Singapore’s world-class trade infrastructure nearby, this Free Commercial Zone facility is set to transform regional distribution.

As the JS-SEZ initiative progresses, more international players are expected to capitalize on Johor’s cost advantages and strategic positioning. With sustainability at its core, 103° represents the future of logistics in ASEAN, paving the way for smart, carbon-neutral, and highly efficient supply chains.

Sources: The Edge Sigapore (2025), Sunway Property (2025)

Keywords: Schenker Sunway City, Johor Logistics Hub, Equalbase Schenker Partnership, 103° Free Zone, Warehouse Lease Johor, Malaysia Supply Chain Growth, Schenker Logistics Expansion, Singapore Malaysia Trade, Regional Distribution Hub, Free Commercial Zone Malaysia