Schenker to pay Cache Logistics Trust $0.77 psft monthly rent for 51 Alps Avenue

The holding arrangement is effective until court ruling.

A holding arrangement has been reached between Cache Logistics Trust and Schenker in relation to 51 Alps Avenue until the Court’s final judgement of the dispute.

The timing of the final judgement is uncertain at this point.

In the interim, Cache has agreed to receive in “protest”, Schenker’s rent of S$0.77 psft / month until further resolution. 

 According to DBS, this is a first step moving towards a resolution of the long-standing dispute between Cache, C&P and Schenker, which has been an overhang on the stock price since May 2016. Cache has filed a lawsuit against C&P, the late master leasee of Schenker Megahub, for its failure to deliver vacant possession of the property at the end of the master lease in August 2016.

"We understand that the penalty under the master lease agreement is for the leasee to pay double the monthly rent to Cache," it said.