Cambridge Industrial Trust

Cambridge Industrial Trust: On 8 December, Cambridge announced the acquisition of 16 International Business Park for $30.5m from M+W Singapore in a sale-and-leaseback transaction, with annual rental escalation of c.2.5% p.a. The property has remaining land lease tenure of 11.6+30 years and will be 100% leased to the vendor for 11.6 years, with two 5-year extension options. Going ahead, StanChart expects incremental income from acquisitions and the completion of enhancement projects to support organic portfolio performance, as master leased properties are converted to multi-tenanted leases. StanChart upgrades Cambridge Trust to In-Line (from Underperform) with TP of $0.67, believes the weak outlook and policy headwinds for the industrial sector could already be priced in.