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Monday, February 8, 2010

REIT Financial News - 8 FEB 2010: ARA and CWT to list new REIT - Cache LogisticsTrust (CLT)

ARA ASSET MANAGEMENT
- RECEIPT OF ELIGIBILITY-TO-LIST FOR THE PROPOSED LISTING OF A REAL ESTATE INVESTMENT TRUST. See announcement.
- ARA TO LIST ASIA PACIFIC-FOCUSED LOGISTICS REIT WITH CWT LIMITED. See press release.

Key Points
  • CLT will be established as a real estate investment trust ("REIT") investing principally in logistics properties in the Asia Pacific.
  • Initial portfolio of CLT will comprise six high quality logistics properties
    located in Singapore valued at approximately S$730 million.
  • CLT will be managed by ARA-CWT Trust Management (Cache) Limited, a joint venture REIT management company owned 60% by ARA and 40% by CWT Limited (“CWT”). 
  • CWT is the sponsor of CLT. It is intended that CLT will be granted a right of first refusal by CWT and its substantial shareholder, C&P, to acquire income-producing real estate located in the Asia Pacific region which is used primarily for logistics purposes.
  • Actual listing date and other details will be confirmed at a later date.
Author's Note
Both CWT and ARA Asset Management are listed companies in SGX. ARA is one of the largest REIT managers in Asia ex-Japan and currently manages four REITs listed in three countries namely, Fortune REIT and Suntec REIT listed in Singapore, Prosperity REIT listed in Hong Kong and AmFIRST REIT listed in Malaysia. CWT is one of Southeast Asia’s largest listed logistics companies.

If I remember correctly, the last REIT to be listed was Parkway Life Reit in August 2007 (if we do not consider IndiaBulls Property Trust, a property business trust listed in 2008).  It will be interesting to see how market reacts to this new member of REITs.

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