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ARA acquires full control of Reit manager and property manager of Cache Logistics Trust
ARA Asset Management (ARA), through its wholly owned unit ARA Cache (Holdings) Pte Ltd, has entered into a share purchase agreement (SPA) with CWT Pte Limited (CWT) to acquire all of CWT’s shares in the Reit manager of Cache Logistics Trust.
It is also concurrently acquiring the property manager of Cache Logistics Trust through a separate entity.
CWT currently owns 40 per cent of the issued shares of the Reit manager, ARA-CWT Trust Management (Cache) Limited, and 60 per cent of the issued shares in the property manager, Cache Property Management Pte Ltd.
Following the completion of the SPA, ARA will hold 100 per cent of the shares in the Reit manager and the property manager. As CWT will no longer hold any shares in the Reit manager, the right of first refusal granted by CWT to Cache would also expire at such point of time.
The move comes on the back of a portfolio rebalancing and growth strategy embarked by Cache over the years in tandem with ARA's expanding presence in the region.
Cache was a first mover among industrial S-Reits to acquire a logistics warehouse in Australia in early 2015. Cache has since acquired 16 warehouses in total, with its Australia properties making up close to 30 per cent of its total portfolio valuation and outnumbering its Singapore portfolio in the first quarter of 2018.
Daniel Cerf, CEO of the Reit manager, noted that the consolidation of interest and decision-making within a single entity in ARA is a significant development for Cache.
"Cache has demonstrated strong disciplined third-party acquisition growth since listing in 2010, having grown from approximately S$730 million to over S$1.4 billion as at March 31, 2018. We will continue to tap on ARA’s expanded network and resources in the Asia Pacific to further the growth of the REIT and its earnings.” he said.
As a globally integrated real assets fund manager, ARA and its associates manage some S$77.2 billion in gross assets.
ARA’s group CEO John Lim said: “With our strong foothold in Asia Pacific and extensive experience in managing REITs, we are confident that exercising our full management control over Cache represents a greater alignment of interest which will be beneficial to unitholders in the long-term.”
The sale of shares of the Reit manager and the property manager is expected to be completed on July 2.