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Cache Logistics Trust to divest Changi warehouse for S$25.5 million
CACHE Logistics Trust on Monday said that it has signed a deal with Agility International Logistics for the proposed divestment of Cache Changi Districentre 3 for S$25.5 million.
This price is in line with the independent valuation by CBRE on Nov 30, 2016.
Cache Changi Districentre 3 is located in the Changi International LogisPark (North) and has a remaining land lease of about 17 years.
The property is a multi-tenanted, two-storey ramp-up warehouse with mezzanine ancillary office space and has a gross floor area of about 177,000 square feet.
Agility, currently a tenant within the property, is an integrated logistics providers with more than 22,000 employees and operations in 100 countries.
Daniel Cerf, CEO of the manager, said: "The proposed sale of Cache Changi Districentre 3, having a relatively short remaining land lease, is part of our portfolio rebalancing strategy to prudently manage and recycle capital into higher performing assets."
The sale proceeds will be used to reduce existing debt and fund new acquisitions, working capital or distributions to unitholders.
The stock closed unchanged at S$0.815 on Monday.