Cache Logistics Maiden Acquisition of 6 Changi North Way and 4 Penjuru Lane

Cache Logistics Maiden Acquisition of 6 Changi North Way and 4 Penjuru Lane:

• Press Release
• Announcement

Key Points

• Two Separate sale and purchase agreements have been entered into for the purchase of two properties in Singapore for an aggregate purchase price of approximately S$39.8 million.
• The two unrelated transactions were signed with APC Distributors Pte Ltd for the acquisition of 6 Changi North Way for a purchase price of S$30.9 million and with Kim Heng Tubulars Pte Ltd for the acquisition of 4 Penjuru Lane for S$8.9 million.
• The combined NPI yield is 8.0% based on the aggregate NPI expected from the two properties. 
• With the addition of these acquisitions, Cache’s total assets under management will increase to S$783.9 million.
• Both acquisitions will be fully-funded by debt. The aggregate leverage of Cache will increase from 23.7% (as at 31 December 2010) to 27.6% as a result of the acquisitions. 
• The transactions are expected to complete within first half of 2011.

Author's Note
These will be the Reit's very first acquisitions since its IPO last year. The acquisitions will be fully funded by debt, and will increase its aggregate leverage to 27.6%. Both acquisitions will also be accretive to the DPU of the Reit.
 
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