Cache Logistics Trust's 51 Alps Avenue (Photo: Cache Logistics Trust)Cache Logistics Trust's 51 Alps Avenue (Photo: Cache Logistics Trust)

Singapore-listed industrial REIT, Cache Logistics Trust, announced on 26 September that it has entered into an interim leasing agreement with logistics company Schenker Singapore over the property at 51 Alps Avenue in the Airport Logistics Park.

The interim leasing agreement, referred to by the REIT as a ‘holding arrangement’, is being entered into pending the resolution of court proceedings taken by Cache Logistics Trust against the property’s master tenant, C&P Land.

As master tenant, C&P Land has subleased the property, which is also known as Schenker Megahub, to Schenker Singapore under an anchor tenant agreement.

However C&P Land and Schenker Singapore subsequently went to court over a lease renewal dispute, but Schenker Singapore continues to occupy the property, despite the master lease agreement between Cache Logistics Trust and C&P Land expiring.

The REIT announced in September 2016 that it will be taking action against C&P Land to claim double the rent payable as provided for in the master lease agreement between both parties.

Under the interim leasing agreement announced on 26 September, Schenker Singapore will now pay Cache Logistics Trust a SGD0.77 per square foot/month, which is the rental rate pre-agreed between C&P and Schenker under their original anchor lease agreement.

The REIT has indicated that it will receive the amount “under protest”, and without prejudice to the ongoing court case.

Cache Logistics Trust will make relevant announcements as and when there are material developments in this matter, and advised unitholders to exercise caution when dealing with units of the REIT.

Units of Cache Logistics Trust finished the trading day about 1% higher from its previous close on the Singapore Exchange to end at SGD0.925.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.