Overview of Portfolio
Cache principally invests in quality income-producing real estate used for logistics purposes, as well as real estate-related assets, in Asia-Pacific. As at 31 March 2013, its portfolio of 12 high quality logistics warehouse properties are strategically located in established logistics clusters in Singapore and China, with a total gross floor area of approximately 4.83 million square feet and a property value of S$971.9 million.
Strategically-Located Portfolio of Properties in Singapore and China
(as at 31 March 2013)
|Total Number of Properties||12|
|Total Gross Floor Area (“GFA”)||4.83 million square feet|
|Total Property Value||S$971.9 million|
|Number of Tenants||8 Master lessees
2 Tenants at Multi-tenanted property
Cache has properties in major logistics clusters in Singapore - the Airport Logistics Park Singapore ("ALPS"), Changi International LogisPark (South), Penjuru/Pandan area in the Jurong Industrial Estate, Changi International LogisPark (North) and Shanghai, China.
- Over 92% of GFA comprises modern ramp-up warehouses
- Portfolio is 100% occupied with long term triple net master leases and multi-tenanted leases. Master leases have locked-in rental escalation of between 1.25% - 2.50% p.a.;
- Weighted average lease expiry ("WALE") of 3.7 years;
- An average age (by GFA) of properties of 5.4 years;
- Properties are strategically located in established logistics clusters near Changi Airport, PSA Terminals, Jurong Port and Shanghai Chemical Industrial Park;
|Purchase Price (S$m)||Valuation (S$m)||GFA
|FY 2012 Revenue (S$m)||Address|
|Air Market Logistics Centre||Cargo lift||13.0||13.5||63,291||1.0||22 Loyang Lane, Singapore|
|APC Distrihub||Ramp-up||30.9||32.3||176,955||3.4||6 Changi North Way, Singapore|
|C&P Changi Districentre||Ramp-up||82.0||89.7||364,361||6.3||5 Changi South Lane, Singapore|
|C&P Changi Districentre 2||Cargo lift||17.7||21.5||111,359||1.6||3 Changi South Street 3, Singapore|
|CWT Cold Hub||Ramp-up||122.0||139.6||341,947||10.1||2 Fishery Port Road, Singapore|
|CWT Commodity Hub||Ramp-up||323.0||
|2,295,927||30.8||24 Penjuru Road, Singapore|
|Hi-Speed Logistics Centre||Ramp-up||69.5||77.4||308,632||5.3||40 ALPS Avenue, Singapore|
|Kim Heng Warehouse||Single storey||8.9||9.4||54,449||0.8||4 Penjuru Lane, Singapore|
|Pan Asia Logistics Centre||Ramp-up||35.2||36.0||196,990||1.9||21 Changi North Way, Singapore|
|Pandan Logistics Hub||Ramp-up||66.0||66.5||329,112||2.6||49 Pandan Road, Singapore|
|Precise Two*||Ramp-up||55.2||N.A.||284,381||N.A.||15 Gul Way, Singapore|
|Schenker Megahub||Ramp-up||99.0||110.0||439,789||7.6||51 ALPS Avenue, Singapore|
|Jinshan Chemical Warehouse||Single storey||13.9
|288 Gongchuang Road, Jinshan District, China|
* Updated on 1 April 2013
Strong and Diverse Demand by Underlying End-Users
Cache's portfolio enjoys a high underlying occupancy by end-users, majority of which are multinational corporations. The end-users are also diversified by trade sectors such as industrial and commercial goods, commodities and chemical sectors, food and cold storage, aerospace, healthcare, courier services and hospitality.
Updated as at 31 December 2012
Updated as at 31 December 2012
High Occupancy in Underlying Portfolio
Cache enjoys a 100% occupancy level. This compares favorably with the Singapore industrial average occupancy rate of approximately 93%1.
- Based on URA 4th quarter 2012 statistics.
Stability of Cash Flows from Long Term, Triple Net Master Leases
12 properties are on master lease agreements. Only APC Distrihub is a multi-tenanted property. The triple net ("NNN") master lease agreements provide for long lease tenures ranging from three to 10 years with locked-in annual rental escalations, providing Cache with a stable income stream. Multi-tenancy properties, on the other hand, provide potential positive rental reversions, which contribute to organic income growth within the portfolio.
Minimal Renewal Risk from Long WALE
The WALE by gross floor area of the portfolio was 3.7 years. This provides a high degree of predictability in cash flow and stability in earnings for the portfolio.
Additional Confidence through Security Deposits
Security deposits underpinning the rental obligation average 3 to 12 months. This provides additional confidence in our cashflow.
Built-in Rental Escalations contributing to Organic Growth
The master lease agreements for the 12 properties are structured with built-in rental escalation of 1.25% to 2.50% per annum over the respective lease term. This provides organic growth and enhances predictability of cash flow for the portfolio.
Long Leasehold for Expiry of Underlying Land Lease
As at 31 March 2013, the weighted average unexpired lease term for the underlying leasehold land is 33.3 years.