Cache Logistics Trust acquires logistics warehouse and office facility in Australia for $39.7m

The property is currently 76% anchored by a Melbourne-based transport and logistics company.

Cache Logistics Trust has announced the proposed acquisition of a single-storey logistics warehouse and office facility located in Victoria, Australia from AGIT Investment $39.7m (AU$41.2m) with an initial property yield of 6.8%.

Situated on a land area of 83,020 sqm with a net lettable area of 37,853 sqm, the freehold property has warehouse ceiling height clearance of 8.5 to 11 m and a super-sized canopy of 6,601 sqm which provides for a truck drive-through capability and all-weather access.

The property is currently 76% anchored by a Melbourne-based transport and logistics company specialising in container transport services in Melbourne metropolitan and regional areas . The weighted average to lease to expiry is 2.53 years.

The lease structure includes a fixed rental escalation of 3.25% pa as well as recovery of land tax and all property outgoings. AGIT Investment has agreed to provide a two-year rental guarantee for the balance 24% vacant warehouse space on market rental terms including 3.25% annual rental escalation.

The proposed acquisition is in line with the manager’s portfolio rebalancing and growth strategy where it seeks to proactively recycle capital through strategic divestments and disciplined acquisitions of assets that contribute to sustainable long-term earnings and asset values.