Cache Logistics Trust primed for another acquisition deal

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OCBC Investment Research predicts that after staying quiet for over four months following the completion of the Precise Two acquisition, Cache Logistics Trust (CACHE) may now be close to striking another acquisition deal in the near term, most likely a Chinese warehouse facility in Shanghai.

The research firm pointed to developments last Friday evening when CACHE announced the incorporation of four wholly-owned subsidiaries, including a 100% stake in Cache Polar Logistics Warehouse (Shanghai) Co., Ltd.

"While no further details were given regarding the purpose of these entities except they are either investment holding or warehousing and logistics service companies, we are of the view that CACHE may be looking to acquire a warehouse facility in Shanghai, China," OCBC said.

"We note that CACHE’s financial position is one of the strongest among the S-REITs space. This gives CACHE the financial resources and flexibility to take on attractive acquisitions as they arise, in our opinion," it added.