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Cache Logistics Trust is acquiring a single-storey warehouse with ancillary office space in Melbourne, Australia from Challenger Life CDI Nominees, the trustee for Challenger Diversified Property Trust, for A$22.25 million (S$24 million).
Located within the industrial suburb of Laverton North, the freehold property sits on a 36,250 sq m site and has a gross floor lettable area of 20,723 sq m. It boasts good logistic warehouse specifications, including 19 loading / unloading bays, a 9.3m warehouse ceiling height clearance and cross-dock features.
Cache is acquiring the property with tenancy, where 100 percent of the lettable area is leased to retail chain Spotlight.
In an SGX filing, ARA-CWT Trust Management, Cache’s manager, revealed that Spotlight’s current lease is for a 10-year tenure that commenced on 1 July 2011 with two six+six years renewal options, while the remaining lease term is around 4.5 years by net lettable area.
“The acquisition will expand Cache’s footprint in Australia where it presently owns and manages six other warehouses,” said Daniel Cerf, CEO of ARA-CWT Trust Management. “With a WALE of 4.5 years and fixed annual escalations of 3.25 percent, the acquisition, when completed, will provide stable and growing income to our unitholders.”
The proposed acquisition will be financed by net proceeds from Cache Changi Districentre 3’s divestment.
The completion of the acquisition will bring Cache’s portfolio to 19 logistics warehouse properties in China, Australia and Singapore, with a total gross floor area of 7.6 million sq ft and a property value of around S$1.2 billion.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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