Singapore-listed Industrial REIT Cache Logistics Trust (Cache)(SGX:K2LU) has announced that acquisition of a property located at 15 Gul Way Singapore is now complete.
|Cache Logistrics Trust currently manages over S$900 million worth of industrial properties across Singapore and China.
The property known as the Precise Two will join 12 other industrial properties currently its belt. Precise Two is a three-storey fully ramp-up warehouse that was singled out for acquisition at a purchase price of S$55.2m early this year. It is strategically located in the heart of Singapore's industrial precinct and is on a land lease tenure of 30 years from 2003. With the property coming online, Cache's market share of ramp-up warehouse in the city increases to 23 per cent.
According to management of Cache, the initial NPI yield for the property is approximately 8.7 per cent which is considerably higher than CACHE’s FY12 implied portfolio yield of 7.1 per cent. Hence, the acquisition is highly anticipated to be yield accretive.