Search

MORE NEWS
BUILDING & ENGINEERING | Staff Reporter, Singapore
Published: 07 Feb 13
634 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

LATEST BUILDING & ENGINEERING JOBS »
PRINT ISSUE »

Subscribe Now
What factors are keeping expats rooted in Singapore?

776 views

What factors are keeping expats rooted in Singapore?

527 views

Can Asian private equity outgrow the west?

208 views

MOST READ EXCLUSIVES

16 items that are a tad cheaper in Singapore than in Hong Kong

16 items that are a tad cheaper in Singapore than in Hong Kong

Coffee lovers need not go farther for a cheaper cup of cappuccino.

by KRISANA GALLEZO
20 Mar 2015 | 59690 views
 

Singapore’s first permanent lifestyle market opens in Bukit Timah

Singapore’s first permanent lifestyle market opens in Bukit Timah

Over 20 brands and labels are gathered together under one roof.

by KRISANA GALLEZO
5 Jan 2015 | 35696 views

Singapore Business Review’s 2014 Class of 40 and under

Singapore Business Review’s 2014 Class of 40 and under

Meet a summa cumlaude graduate who rises from poverty to become JP Morgan’s head of corporate finance.

by KRISANA GALLEZO
12 Jan 2015 | 33505 views
 

Chow Tai Fook opens second store in Singapore

Chow Tai Fook opens second store in Singapore

It's a 1,000-square feet new jewellery shop on Orchard Road.

by KRISANA GALLEZO
26 Feb 2015 | 11161 views

This food hub in Seah Street brings a throwback experience to dining

This food hub in Seah Street brings a throwback experience to dining

It offers an exciting lunch menu which changes every week.

by KRISANA GALLEZO
16 Jan 2015 | 7415 views
 

This is a woman’s world: CRIB launches Singapore’s first business and lifestyle incubator for women

This is a woman’s world: CRIB launches Singapore’s first business and lifestyle incubator for women

Find out what the three key platforms of CRIB are.

by KRISANA GALLEZO
10 Mar 2015 | 7379 views

The New Black hits Singapore with rarest green coffee

The New Black hits Singapore with rarest green coffee

It also boasts of its Impossible Collection curated by the ‘world’s rockstar roasters'.

by KRISANA GALLEZO
5 Mar 2015 | 4058 views
 

Check out this integrated office cum lab of Friesland Campina in Singapore

Check out this integrated office cum lab of Friesland Campina in Singapore

A curved glass wall resulted in a 90% open-plan office.

by KRISANA GALLEZO
17 Feb 2015 | 3979 views

Too many business cards? Why don’t you try Sansan’s business card management service?

Too many business cards? Why don’t you try Sansan’s business card management service?

After Singapore, this contract management company plans to expand in the APAC region.

by KRISANA GALLEZO
12 Feb 2015 | 3824 views
 

This startup created the world’s first bed sensor technology

This startup created the world’s first bed sensor technology

No more patients accidentally falling off hospital beds.

by KRISANA GALLEZO
14 Jan 2015 | 3260 views

Spencer Ogden gets funky with its newest trademark space in Singapore

Spencer Ogden gets funky with its newest trademark space in Singapore

The company invested over $1M to make this signature office possible.

by KRISANA GALLEZO
5 Feb 2015 | 3125 views
 

Meet INSEAD’s new chairman of the board

Meet INSEAD’s new chairman of the board

Find out how Andreas Jacobs plans to bring “business as a force for good”.

by KRISANA GALLEZO
14 Jan 2015 | 2491 views

What it’s like going into business with your significant other

What it’s like going into business with your significant other

A couple who founded an artisanal food outlet, P.Bistro, shares experience.

by KRISANA GALLEZO
9 Jan 2015 | 2134 views
 

LawCanvas saves the day: Easy legal documents in under a minute

LawCanvas saves the day: Easy legal documents in under a minute

The founders revolutionized the legal industry despite having different backgrounds.

by KRISANA GALLEZO
2 Mar 2015 | 1937 views

MetLife builds its first global R&D hub

MetLife builds its first global R&D hub

It bills itself as a first-of-its-kind innovation centre for the insurance industry.

by KRISANA GALLEZO
26 Jan 2015 | 1608 views
 

PocketMath makes buying mobile ad impressions easier

PocketMath makes buying mobile ad impressions easier

It integrates over 20 ad exchanges and offers over 20B impressions a day.

by KRISANA GALLEZO
9 Feb 2015 | 1590 views

The heat is on: This office literally gets a bit hot for their green drive

The heat is on: This office literally gets a bit hot for their green drive

Discover how they execute their green initiatives in the office.

by KRISANA GALLEZO
22 Jan 2015 | 1468 views
 

Want to be hands-on with your ideal home setting?

Want to be hands-on with your ideal home setting?

Commune is opening an Experience Centre for meticulous homeowners.

by KRISANA GALLEZO
23 Mar 2015 | 1432 views

FTMSGlobal Academy Singapore launches new weekend MBA

FTMSGlobal Academy Singapore launches new weekend MBA

The course fee is below $20,000.

by KRISANA GALLEZO
8 Jan 2015 | 1229 views
 

Here’s how migrants can be sure their loved ones back home paid the doctor a visit

Here’s how migrants can be sure their loved ones back home paid the doctor a visit

This NRI-focused startup also gives migrants monthly feedback from the doctor.

by KRISANA GALLEZO
7 Jan 2015 | 1223 views

What is the future of the sports business in Singapore?

What is the future of the sports business in Singapore?

Can a new billion-dollar stadium give Singapore the edge it needs to compete for world-class sporting events?

by STAFF REPORTER
20 Mar 2015 | 380 views