ARA LOGOS Logistics Trust's Changi Districentre 2. (Photo: REITsWeek)ARA LOGOS Logistics Trust's Changi Districentre 2. (Photo: REITsWeek)

Singapore-listed industrial REIT, Cache Logistics Trust, has entered into a sale and purchase agreement with Agility International Logistics on the possible sale of 6 Changi North Way.

The property, which is more commonly referred to as Cache Changi Districentre 3, is being disposed by the REIT for SGD25.5 million (USD17.5 million). The asset was originally acquired in March 2011 for SGD30.9 million.

The two-storey ramp-up warehouse with an ancillary office space is located within the Changi International LogisPark (North), and has a remaining land lease of approximately 17 years.

The property is multi-tenanted, and features a gross floor area of approximately 177,000 square feet. Agility International Logistics is currently a tenant of the building.

The REIT has described the property’s divestment as one that is in line with its objective of optimising returns through proactive management.

“The proposed sale of Cache Changi Districentre 3, having a relatively short remaining land lease, is part of our portfolio rebalancing strategy to prudently manage and recycle capital into higher performing assets”, said Daniel Cerf, CEO of the REIT’s manager.

The divestment is expected to complete by the end of December 2016, pending approvals from JTC Corporation.

Proceeds from the divestment will be used to reduce existing debt, fund new acquisitions, deployed as working capital, or distributed to unitholders, said the REIT.

Upon divestment, the REIT’s portfolio will consist of 18 logistics warehouse properties in Singapore, Australia and China, with a portfolio value of approximately SGD1.25 billion.

Units of Cache Logistics Trust finished the trading day unchanged from its previous close on the Singapore Exchange to end at SGD0.815.

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.