The proposed acquisition of Pandan Logistics Hub from CWT Limited is expected to boost Cache Logistics Trust’s total assets under management to S$944 million.
In a statement, ARA-CWT Trust Management Limited, manager of Cache Logistics Trust, said the acquisition is the largest that Cache has made to date.
Cache has proposed to acquire Pandan Logistics Hub from CWT for S$66 million.
On completion of the proposed sale, CWT will enter into a lease agreement with Cache for the property.
ARA-CWT Management said the contracted average lease term is 4.3 years in total with a net property income yield of 7.6 per cent.
Pandan Logistics Hub is a newly developed ramp-up logistics warehouse facility at 49 Pandan Road in Singapore.
It has a built-up gross floor area of 329,109 square feet, and is fully-occupied with quality end-users.
ARA-CWT Management said the acquisition will offer an opportunity for Cache to up its market share of ramp-up warehouses in Singapore from 21.2 per cent to 22.9 per cent.
The proposed deal will be fully-funded by debt.
Mr Daniel Cerf, CEO of the Manager said: “This is an outstanding building and demonstrates the strength of our ongoing relationship with CWT. As with our first acquisition of Jinshan Chemical Warehouse from CWT in 2011, we are confident that Pandan Logistics Hub will add value to Cache by not only enlarging our portfolio with another high quality asset but just as significantly, increasing our distribution per unit.”
Moving forward, the management is confident of enhancing its portfolio to include more quality, yield accretive logistic properties in Singapore and the Asia Pacific.
Source : Channel NewsAsia – 8 May 2012