Singapore REIT Spends $178m on Nine Australian Logistics Assets

Singapore-listed Cache Logistics Trust has purchased a portfolio of logistics assets for $177.6 million across Victoria, NSW and Queensland on a yield of 6.4 per cent.

The nine logistics warehouse assets were part of a portfolio held by US giant Blackstone. Late last year Blackstone offered up for sale 10 properties worth over $200 million through Colliers International.

The purchase price will reach approximately $191 million after stamp duty and acquisition fees.

The deal is Cache’s largest acquisition in Australia and will increase its portfolio by about 15.6 per cent of which the Australian assets will make up about 28 per cent.

"The yield-accretive transaction not only provides income and geographical diversification to Cache but further enhances its base of high-quality logistics tenants and end-users," Daniel Cerf, chief executive of the Singapore-based REIT said.

"Cache is well-positioned to ride on foreseeable growth in the industrial sector in Australia which is supported by a stable economy and strong investments in infrastructure."

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The portfolio, with a gross lettable area of approximately 142,103 square metres, comprises nine prime institutional grade logistics properties on freehold land located on the eastern seaboard. The properties are in core, well-established industrial precincts in Melbourne (6 properties), Sydney (1 property) and Brisbane (2 properties) and are in close proximity to main arterial roadways and transport infrastructure.

The tenant base includes companies such as DHL Supply Chain, Toll, Melbourne Transport and Warehousing, Mars Australia, Penske Power Systems and Cummins South Pacific.

The portfolio has a longer weighted average lease to expiry (WALE) of five years and a strong occupancy of 98.1 per cent.

Cache Logistics Trust is a real estate investment trust that invests in quality income-producing real estate used for logistics purposes, as well as real estate-related assets, in Asia-Pacific.

Cache was listed on the main board of the Singapore Exchange in 2010.