Cache set to nab $56.4m facility in Australia

It has a lettable area of 58,795 sqm.

Cache revealed that it has entered into a sale and purchase agreement to nab a distribution warehouse facility in Adelaide, Australia, according to a report by OCBC.

Worth approximately $56.4m, the asset sits on freehold land and has lettable area of 58,795 sqm. It comprises four single-storey warehouses, a cold store and freezer warehouse and an administrative office block.

The transaction will be funded partially by proceeds raised from a recent private placement exercise and partially by debt, and is expected to generate an NPI yield of about 8.9% in its first year.

“When the acquisition is complete, the space will be master-leased to MetCash Trading Ltd on a triple net lease structure, with an annual rental escalation pegged to the CPI,” concluded OCBC.