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Cache Logistics Trust sells warehouse to JTC for S$9.7m
CACHE Logistics Trust has sold Kim Heng Warehouse to JTC Corporation for S$9.7 million.
The single-storey warehouse at 4 Penjuru Lane in the Jurong industrial estate has a land area of 87,000 sq ft, and a gross floor area of 54,000 sq ft. The property, acquired in 2011 for S$8.9 million, was valued at about S$9 million as at Dec 31, 2014.
The warehouse had been the smallest property in the Reit's portfolio. "Despite potential for redevelopment, given the property's limited future income growth and considering the offer at hand, strategically divesting optimises returns and provides Cache with opportunity to recycle its capital," said Daniel Cerf, CEO of the Reit's manager ARA-CWT Trust Management Limited. "This is in line with the manager's proactive asset management strategy."
The transaction will be completed by this month, and the sale proceeds will be used to reduce existing debt, for general and corporate working capital and for distribution to unitholders.
After the divestment, Cache owns 16 logistics warehouse properties in Singapore, Australia and China, with a total value of S$1.2 billion and gross floor area of 6.7 million sq ft.