Singapore-listed industrial REIT, Cache Logistics Trust, has completed the acquisition of a single-storey warehouse in Melbourne which was purchased for AUD22.5 million (USD17.2 million).
The procurement, which was first announced in February 2017, is the REIT’s seventh property acquisition in Australia.
The warehouse features gross lettable area of 20,723 square metres (223,061 square feet) with 19 loading and unloading bays.
It is currently leased to single tenant Spotlight Pty Ltd on a 10-year tenure which commenced on 1 July 2011, with two 6+6 years renewal options.
The property's lease terms also feature fixed annual rental escalations of 3.25%.
The acquisition was funded by net proceeds from the divestment of Cache Changi Districentre 3.
With this induction, the industrial REIT’s portfolio now comprises of 19 logistics warehouse properties in Singapore, Australia and China with a value of approximately SGD1.2 billion (USD0.85 billion).
Cache Logistics Trust finished the trading day about 0.6% lower from its previous close on the Singapore Exchange to end at SGD0.82.