CLT – CNA

Cache Logistics Trust expects to raise S$417.2m from its IPO

Cache Logistics Trust expects to raise some S$417 million from its initial public offering.

The IPO, launched on Thursday, is the first logistics real estate investment trust to be listed in more than two years.

CLT is a joint real estate investment unit of CWT and ARA Asset Management.

It's offering more than 470 million units at 88 cents each.

The IPO is priced at the higher end of the 84 cents to 88 cents indicative range but Mr John Lim, chief executive officer of ARA Asset Management said that he remains confident that it will still attract "overwhelming demand."

There are currently six properties in CLT's portfolio.

They are located near Changi Airport, PSA Corp's terminals and Jurong Port.

With a total gross floor area of 3.9 million square feet, the properties include ramp-up warehouses – a multi-storey feature that CLT's chief executive officer Daniel Cerf believes will maximise plot ratio and boost its resilience as a logistics REIT.

Earlier this year, CWT sold two properties in Singapore to CLT for S$445 million, with the REIT funding the purchase through a combination of shares and cash.

CLT plans to use its IPO proceeds to fund new properties and working income.

The units are expected to start trading on the Singapore Exchange mainboard on April 12.

Macquarie Capital, Standard Chartered and DBS Bank are underwriters and joint global co-ordinators of the IPO. – CNA/vm

Link : IPO Prospectus