Cache Logistics Trust amicably resolves dispute with Schenker S'pore

CACHE Logistics Trust has announced that it has reached an amicable resolution of the dispute that it has been involved in with Schenker Singapore Pte Ltd over the property 51 Alps Avenue in Singapore.

Schenker was the end-user occupying the property under a lease agreement between Bax Global Pte Ltd and C&P Land Pte Ltd, which was subsequently novated to Schenker.

The legal proceedings, commenced by Schenker last year, arose as a result of a disagreement over whether Schenker had a valid option to renew its anchor lease agreement.

ARA-CWT Trust Management (Cache) Limited, as manager of Cache Logistics Trust, announced on Tuesday that all parties have since agreed to an amicable resolution of the dispute, and will take steps to discontinue the legal proceedings.

Schenker and HSBC Institutional Trust Services (Singapore), as trustee of Cache Logistics Trust, have - with the approval of JTC Corporation - entered into a fresh lease agreement where Schenker will lease 100 per cent of the property for a period of 46 months, starting from Nov 1, 2017, until Aug 31, 2021.

HSBC Institutional Trust Services (Singapore) is also due to receive a lump-sum payment of some S$8.2 million as part of the amicable resolution.