CACHE Logistics Trust on Monday said that German logistics firm Schenker has proposed, to which the trust has agreed, a holding arrangement for the industrial property at 51 Alps Avenue pending the resolution of the court proceedings initiated by Schenker.
The holding arrangement involves Schenker paying Cache S$0.77 per square foot per month, which is also the rental rate pre-agreed between C&P and Schenker under their anchor lease agreement for the property.
Cache will receive this amount "under protest", meaning that it is not technically agreeable to the rent figure, but will accept it under the holding arrangement.
C&P was the master lessee of the property, but that agreement ended in August 2016, and C&P failed to deliver vacant possession of the property upon the expiry. So Cache has also filed a writ with the court against C&P for a claim of double the amount of rent payable as a result of Schenker remaining on the property.
Schenker refuses to move as it wants to exercise its option to renew its anchor lease for another five years, at a rental rate pre-agreed between C&P and Schenker when the original anchor lease agreement was signed in June 2005. But C&P said that Schenker does not have a valid option to renew.