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Singapore-listed Cache Logistics Trust has agreed to purchase a warehouse distribution facility in Queensland, Australia for approximately AU$10.5 million (S$10.5 million).
With a gross leasable area of 6,276 sqm, the property consists of a single-storey industrial warehouse facility with ancillary office space and a standalone building for training personnel.
The facility stands on a freehold land, measuring about 22,760 square metres, situated at 223 Viking Drive within the established industrial precinct of Wacol, or about 18 kilometres southwest of Brisbane’s Central Business District (CBD).
Following the completion of the deal, the warehouse facility will be fully leased until August 2023 to Western Star Trucks Australia Pty Ltd (WSTA), an importer and distributor of commercial trucks and other vehicles in the country. This tenant is also a subsidiary of New York-listed Penske Automotive Group.
“We are pleased to expand our relationship with the Penske Group by our acquisition of another warehouse they operate in Australia,” said Daniel Cerf, CEO of ARA-CWT Trust Management (Cache) Ltd, the manager of Cache Logistics Trust.
“Situated immediately adjacent to the warehouse located at 203 Viking Drive, which we acquired earlier last month, this acquisition will further strengthen our presence in the Brisbane area, and bring about greater economies of scale,” he added.
Cache’s acquisition will be funded through bank borrowings and proceeds from the private placement to be launched on 3 November 2015. Additionally, the trust’s aggregate leverage ratio is projected to rise marginally from 35.6 percent to 36.0 percent after the deal’s close.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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