Cache Logistics Trust

Cache Logistics Trust: completes its first acquisition for FY13, having exercised its call option sign 6 Feb ’13, for the purchase of Precise Two, located at 15 Gul Way. The property is a newly completed ramp-up logistics warehouse located in the Jurong Industrial Precinct. The acquisition is a sale and 6-yr leaseback to vendor Precise Devt, including an option to renew for another 6 yrs, and locked-in rental escalation of 4.0% every two years on a triple-net basis. The building is 100% occupied. To finance the acq, Cache has issued new placement shares to new and existing institutional investors, at an issue price of $1.24. This translates to a 5.3% discount to the counter’s last close at $1.31, and a 29% premium to Cache’s NAV/sh at $0.96. Including the latest acq, Cache’s portfolio under mgt is now at 5.1m sf worth approx $1.0b. Cache offers indicated yield at 6.5%, similar to other smaller industrial REIT peers (Cambridge, AIMS AMP Industrial Trust, Sabana) that trade at 6.4 – 7.6%.