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Cache Logistics Trust to acquire three properties in Australia for A$70m
CACHE Logistics Trust has entered into separate sale and purchase agreements to acquire three industrial properties in Australia for A$70 million (S$74 million).
Including stamp duty, acquisition fee payable to the trust manager and other professional fees and expenses, the total estimated costs work out to A$75.6 million.
The first property - located at Chester Hill, New South Wales - is a freestanding warehouse facility with a net lettable area of about 25,830 sq m.
The second property - located at Somerton, Victoria - is a distribution centre with a net lettable area of 21,279 sq m.
The third property - located on the southern outskirts of Brisbane, Queensland - is a warehouse and distribution facility with dual crossover street access. It has a net lettable area of about 9,492 sq m.
The trust manager, ARA-CWT Trust Management (Cache) Ltd, said on Monday that these acquisitions represent an opportunity for Cache to acquire attractive and high-quality warehouses occupying freehold land in good locations with close proximity to major roads linking central business districts, ports and airports.
The properties have a combined weighted average lease to expiry (WALE) of 9.7 years by lettable area, hence extending Cache portfolio's WALE from 4.1 years to 4.6 years.
"Cache will benefit from an increased portfolio size that will create a stronger and more diversified platform for further acquisition growth, primarily due to better access to both the capital markets and the debt markets," the trust manager added.
When the acquisitions are completed, Cache's investment property portfolio will grow by 7.1 per cent to S$1.2 billion.