Cache sells Hi-Speed Logistics Centre for $73.8m

It is recycling its capital to create debt headroom.

Cache Logistics Trust (Cache) entered a sale and purchase agreement with AP SG 16 Pte. Ltd. to sell Hi-Speed Logistics Centre at 40 Alps Avenue.

According to an announcement, the consideration price of the property is at $73.8m. Cache acquired the property in April 2010 for $69.5m.

Hi-Speed Logistics Centre is located within the Airport Logistics Park of Singapore and has a remaining land lease of approximately 47.6 years. The property is a multi-tenanted, four-storey part ramp-up warehouse with seven-storey ancillary office and has a gross floor area of approximately 309,000 sqft.

The current occupancy rate of the property is approximately 74%.

"The Proposed Divestment is in line with the Manager’s strategy to optimise returns through both proactive asset management and rebalancing the Cache portfolio where capital is intended to be redeployed for higher and better use," Cache said.

"The Proposed Divestment provides Cache with the opportunity to recycle its capital in line with the Manager’s portfolio rebalancing and growth strategy to create debt headroom and reinvest capital into higher performing assets with stronger property fundamentals," it added.