Cache Logistics Trust eyes more Australian acquisition after private fundraising move

It has earmarked $37m for properties Down Under.

Cache Logistics Trust is looking to expand its presence in Australia after raising $100m in a private placement exercise last week.

According to Moody’s, the trust has earmarked $37 million for future acquisitions in Australia, reflecting its ambitions to expand its footprint in the country.

Cache made its initial entry into the Australian market in February 2015 when it acquired three distribution warehouses for AUD75.6 million (SGD79.3 million). In October 2015, it completed the acquisition of a warehouse in Queensland for AUD29.5 million (SGD29.6 million).

“Although we recognize that such acquisitions will increase the trust’s asset portfolio size and improve its geographic diversification, a large-scale debt-funded asset purchase would likely hurt its credit metrics. We believe that management will exercise prudence in financing future acquisitions,” Moody’s said.