CLT – BT

Cache Reit to buy warehouse for $66m

Pandan Logistics Hub will give net property income yield of 7.6%

CACHE Logistics Trust is making its biggest buy to date in the form of a ramp-up logistics warehouse facility, for which it will shell out $66 million.

The real estate investment trust's manager, ARA-CWT Trust Management, said yesterday that Cache will purchase the Pandan Road located Pandan Logistics Hub from CWT Ltd under a sale and leaseback arrangement. CWT is a controlling shareholder of ARA-CWT – a joint-venture Reit management company between ARA Asset Management and CWT.

ARA-CWT said that the purchase was made at an arm's length, willing-buyer and willing-seller basis. The property is the second acquisition that Cache has made to date under the Rights of First Refusal (ROFR) arrangement with CWT as its sponsor.

Among the reasons that led to the purchase is the net property income yield of 7.6 per cent for Pandan Logistics Hub, said ARA-CWT. The acquisition also allows Cache to increase its market share of ramp-up warehouses in Singapore to 22.9 per cent from 21.2 per cent.