Cache Logistics Trust gains new long-term end-user for CWT Commodity Hub - 15 OCT 2010

Cache Logistics Trust gains new long-term end-user for CWT Commodity Hub. See press release.

Key Points

• CWT Commodity Hub has gained a new long-term multinational corporation end-user from the publishing sector which will provide certainty and growth in future cash flow beyond the current master lease period and diversify the tenant mix of the Cache portfolio.
• CWT Commodity Hub, located along Penjuru Road, is the largest warehouse in Singapore and also the largest asset in the Cache portfolio of six properties. 
• The property is currently leased to CWT Limited (“CWT”) as the master lessee for an initial lease term of five years till April 2015 plus an option to renew for another five years.
• CWT’s new end-user has committed to occupy 61,000 sq ft at CWT Commodity Hub for nine years from January 2011 till December 2019. 
• As the long tenure extends beyond CWT’s current 5-year master lease commitment to Cache, CWT has extended the lease for the 61,000 sq ft of space through December 2019. 
• The new lease is structured with locked-in annual rental escalation providing growth in future revenue for Cache beyond the present master lease period.