Search

MORE NEWS
BUILDING & ENGINEERING | Staff Reporter, Singapore
Published: 07 Feb 13
619 views


Cache Logistics Trust to purchase warehouse from Precise Development

Deal is set at S$55.2m.

Cache Logistics Trust announced that they have signed an option to purchase Precise Two Building (along 15 Gul Way) for S$55.2m (inclusive of upfront land premium of S$6.15m). 

According to DBS, the property is a newly completed three-storey ramp-up warehouse of c284k sqft GFA and sits on a land with a 30 year tenure starting Oct’03.

Here's more:

The vendor is Precise Development Pte Ltd, who will lease back the property for a 6 year term, with an option for a further 6 years. The completion of this deal is subject to JTC Corporation approval. 

High initial yield of 8.7%. While the initial yield of 8.7% is high, we believe that it compensates for the shorter land lease tenure of c20 years. It is also noted to be higher than Cache’s implied yields of c6.5%, which means that the acquisition will be accretive to earnings. With this acquisition, Cache will benefit from a larger and more diversified portfolio of warehouses in Singapore. 

Moody’s rating obtained; improved financial flexibility. Cache also announced that they have obtained the long anticipated Baa3 rating from Moody’s. 

Given a visible acquisition pipeline from its sponsor, the credit rating will provide the trust with added financial capacity and flexibility to head above the current 35% limit.

BUY, TPS$1.40. The acquisition forms c26% of our forecasted S$200m in acquisitions. Further re-rating catalyst hinges on the manager executing on more accretive acquisitions. Stock offers FY13-14F yied of c7.0% 



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: Precise Development, Cache Logistics Trust, Precise Two Building

CO-WRITTEN ARTICLES & SPONSOR CONTENT ››

Here's why Concorde Hotel Singapore and Putrajaya International Convention Centre lead the way in technology and building efficiency.
356 views

PRINT ISSUE »

Subscribe Now
What factors are keeping expats rooted in Singapore?

33 views

Can Asian private equity outgrow the west?

6 views

15 smart ideas to outwit the wiliest investment wolves this Year of the Sheep

12 views

MOST READ EXCLUSIVES

Singapore's 12 most influential business professors under 40

Singapore\'s 12 most influential business professors under 40

The youngest is aged 34.

by KRISANA GALLEZO
23 Oct 2014 | 71228 views
 

Singapore’s 7 hot new restaurants in September

Singapore’s 7 hot new restaurants in September

Have you checked out a very secretive cafe at 48 ¾ Niven Road?

by KRISANA GALLEZO
6 Oct 2014 | 26587 views

Singapore’s top 5 work from home jobs

Singapore’s top 5 work from home jobs

Here are jobs that you can do while sitting on your couch or in your favorite coffee shop.

by KRISANA GALLEZO
11 Dec 2014 | 15510 views
 

Check out General Motors’ new HQ in Singapore

Check out General Motors’ new HQ in Singapore

A ‘hot desks’ rule is implemented in the new office.

by KRISANA GALLEZO
3 Oct 2014 | 12318 views

Singapore’s 10 favorite meals on wheels

Singapore’s 10 favorite meals on wheels

You better cut the pizza: An Italian dish bagged the number 1 spot.

by KRISANA GALLEZO
17 Oct 2014 | 12049 views
 

Don’t settle for less: Legendary Hong Kong brings authentic and traditional HK dishes to Singapore

Don’t settle for less: Legendary Hong Kong brings authentic and traditional HK dishes to Singapore

The restaurant’s construction cost over a million dollars.

by KRISANA GALLEZO
3 Nov 2014 | 7402 views

Opera Estate welcomes a little bar simply called ‘Slake’

Opera Estate welcomes a little bar simply called ‘Slake’

It wants to be your living/dining room outside of home.

by KRISANA GALLEZO
25 Sep 2014 | 4833 views
 

The new Acronis HQ will make you feel like ‘walking into blue space’

The new Acronis HQ will make you feel like ‘walking into blue space’

Also, check out photos of its 7-eleven-like pantry amenities.

by KRISANA GALLEZO
28 Oct 2014 | 4481 views

Sofitel in Sentosa launches world's largest So SPA

Sofitel in Sentosa launches world\'s largest So SPA

Future plans are finally revealed.

by KRISANA GALLEZO
22 Oct 2014 | 4055 views
 

Want to know a ‘smart’ way to have your clothes washed?

Want to know a ‘smart’ way to have your clothes washed?

My Laundry Box introduces a smart laundry locker platform that works with an app.

by KRISANA GALLEZO
17 Oct 2014 | 3155 views

Could this be the most intelligent phonebook app yet?

Could this be the most intelligent phonebook app yet?

It’s self-updating and removes duplicates for worry-free contacts storage.

by KRISANA GALLEZO
29 Sep 2014 | 3047 views
 

Arete Culture opens first store in Lam Soon Building

Arete Culture opens first store in Lam Soon Building

It's a one-stop shop for your quirky interior decors.

by KRISANA GALLEZO
24 Sep 2014 | 3008 views

Do you want to build your own bike?

Do you want to build your own bike?

This store allows owners to creatively piece bike parts on their own.

by KRISANA GALLEZO
28 Oct 2014 | 2361 views
 

Hippy Tyrwhitt Road welcomes a resto-bar offering an all-day happy hour

Hippy Tyrwhitt Road welcomes a resto-bar offering an all-day happy hour

See how a radio DJ pursued his love for food.

by KRISANA GALLEZO
20 Oct 2014 | 1967 views

Singapore’s first news aggregation app attracts 1 million users in two years

Singapore’s first news aggregation app attracts 1 million users in two years

Stay in the loop with news and lifestyle content from SBR and 600 other publishers.

by KRISANA GALLEZO
10 Dec 2014 | 1367 views
 

This device is making a statement that hand-waving gestures are not usable

This device is making a statement that hand-waving gestures are not usable

It's a creation by 3 young computer wizards from Singapore.

by KRISANA GALLEZO
25 Sep 2014 | 1191 views

Jack Wills opens its first store in Singapore

Jack Wills opens its first store in Singapore

A 'fun' brand that values the Brit vibe. Put your game face on!

by KRISANA GALLEZO
10 Dec 2014 | 1187 views
 

World Cup 2014 might have ended but this anti-gambling campaign is far from over

World Cup 2014 might have ended but this anti-gambling campaign is far from over

Many suggested to put it down amidst criticism, but Goodfellas cannot be stunned.

by KRISANA GALLEZO
15 Oct 2014 | 1170 views

What Singaporean investors can expect from Okinawa’s development

What Singaporean investors can expect from Okinawa’s development

A 40% tax cut in setting up business is expected to lure investors.

by KRISANA GALLEZO
12 Dec 2014 | 1005 views
 

Now, hear this: You won't believe what your ears are seeing

Now, hear this: You won\'t believe what your ears are seeing

Ubersnap lets you upload photos with background music.

by KRISANA GALLEZO
2 Oct 2014 | 890 views

Kungfumath wants to revamp boring e-learning portals

Kungfumath wants to revamp boring e-learning portals

“Play with numbers” in its literal sense.

by KRISANA GALLEZO
5 Dec 2014 | 707 views
 

The future of innovation: What’s next after Facebook and Twitter?

The future of innovation: What’s next after Facebook and Twitter?

A video version of Twitter might be under way.

by KRISANA GALLEZO
11 Dec 2014 | 676 views

SFIC Institute's new training hub overhauls carpenters' career image

SFIC Institute\'s new training hub overhauls carpenters\' career image

It’s the first carpentry training center in Singapore’s furniture industry.

by KRISANA GALLEZO
10 Dec 2014 | 653 views
 

Inverted Edge gives spotlight to all independent contemporary fashion designers

Inverted Edge gives spotlight to all independent contemporary fashion designers

The homegrown startup has raised US$1.6M total funding in two years.

by KRISANA GALLEZO
3 Nov 2014 | 610 views

ENVision campaign‘s ‘hard truth’ could make you think twice

ENVision campaign‘s ‘hard truth’ could make you think twice

Singapore might run out of space for trash by 2035 and more.

by KRISANA GALLEZO
15 Dec 2014 | 240 views
 
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter