Cache Logistics Trust (SGX:K2LU) announced on 13 November that it is buying a distribution warehouse facility located at Kidman Park, Adelaide, South Australia for AUD62.5 million (SGD62.7 million) including acquisition costs .

The property, located at 404 - 450 Findon Road, comprises of four single-storey warehouses, a cold store and freezer warehouse and an administrative office block totalling approximately 58,795 square metres of gross lettable area.

“Including this Property, Cache will own and manage five warehouse properties in Australia which make up close to fifth of our portfolio lettable area”, said Daniel Cerf, Chief Executive Officer of Cache. “The intention is to utilise part of the proceeds raised via the recent private placement to grow the portfolio accretively while maintaining a prudent capital structure”, he added.

Post completion, the facility will be fully master-leased to Australian groceries wholesaler and distributor Metcash Trading Limited on a triple net lease structure, with an annual rental escalation pegged to the Consumer Price Index.

The acquisition is expected to generate a net property income yield of approximately 8.9% and the weighted average lease expiry (WALE) is approximately 4.6 years as at 13 November 2015, said the Singapore-listed industrial REIT.

Following the completion of the acquisition, Cahce Logistics Trust’s portfolio will increase by 4.8% to SGD1.37 billion comprising of 18 high quality logistics warehouse properties in Singapore, Australia and China.

Units of Cache Logistics Trust finished the trading day 1.6% lower from its previous close on the Singapore Exchange to end at SGD0.92.