Cache Logistics Trust ditches Changi warehouse for $25.5m

The warehouse will be sold to Agility International Logistics.

Singapore REIT Cache Logistics Trust has decided to divest its warehouse in Changi International LogisPark and sell it to Agility International Logistics for a sale price of $25.5m.

The Cache Changi Districentre 3, which is located within the Changi International LogisPark, has a remaining land lease of approximately 17 years. The group said the property is a multi-tenanted, two-storey ramp-up warehouse with mezzanine ancillary office space with a gross floor area of approximately 177,000 sq ft.

“The proposed divestment is in line with the Manager’s objective to optimise returns through proactive asset management. 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 CEO of the group's manager ARA-CWT Trust Management said.

The transaction will be completed as soon as JTC Corporation grants the necessary approval. Cache noted that the proceeds from the divestment will be used to reduce existing debt and fund new acquisition, working capital, or distributions to unitholders.