Overview of Portfolio

Cache invests in quality income-producing real estate used for logistics purposes, as well as real estate-related assets, in Asia-Pacific. As at 30 June 2014, its portfolio of 13 high quality logistics warehouse properties are strategically located in established logistics clusters in Singapore and China, with a total gross floor area of approximately 5.1 million square feet and a total deposited property of approximately S$1.08 billion.

Strategically-Located Portfolio of Properties in Singapore and China

as at 30 June 2014
Number of Properties 14 Properties
12 - Singapore (completed)
1 - Singapore (incl DSC ARC* under development)
1 - China, Shanghai
Valuation S$1.04 bil
S$1.16 bil (incl completed value of DSC ARC)
Gross Floor Area (GFA) 5.1 mil sf
6.1 mil sf (incl DSC ARC)
Occupancy 99.6%
Number of Tenants 8 Master Lessees
4 Individual Tenants (incl DHL Supply Chain)
Building Age 6.3 years
5.3 years (incl DSC ARC)
Weighted Average Lease to Expiry (“WALE”) 3.8 years (incl DSC ARC)
Weighted Average Land Lease Expiry 31.1 years (incl DSC ARC)
Property Features 10 - Ramp-up (incl DSC ARC)
2 - Cargo Lift
2 - Single Storey
Rental Escalations built into Master Leases 1.25% to 2.50% pa

  1. *Note: DSC ARC refers to DHL Supply Chain Advanced Regional Centre, a build-to-suit logistics facility development for DHL Supply Chain Singapore Pte Ltd in Tampines LogisPark, which is due to complete in 2015.

Cache's properties are located 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.

Singapore

China, Shanghai

Property Name Property
Feature
Acquisition
Date
Purchase Price
(S$ million)
Valuation1
(S$ million)
Gross Floor Area
(sq ft)
2013 Gross Revenue
(S$ million)
Address
CWT Commodity Hub Ramp-up 12 April 2010 323.0 365.0 2,295,927 31.2 24 Penjuru Road,
Singapore
Schenker Megahub Ramp-up 12 April 2010 99.0 110.2 439,789 7.7 51 ALPS Avenue,
Singapore
C&P Changi Districentre Ramp-up 12 April 2010 82.0 90.5 364,361 6.4 5 Changi South Lane,
Singapore
CWT Cold Hub Ramp-up 12 April 2010 122.0 139.6 341,947 10.3 2 Fishery Port Road,
Singapore
Pandan Logistics Hub Ramp-up 3 July 2012 66.0 66.5 329,112 5.3 49 Pandan Road,
Singapore
Hi-Speed Logistics Centre Ramp-up 12 April 2010 69.5 77.6 308,632 5.4 40 ALPS Avenue,
Singapore
Precise Two Ramp-up 1 April 2013 55.2 56.0 284,384 3.7 2 15 Gul Way,
Singapore
Pan Asia Logistics Centre Ramp-up 30 April 2012 35.2 36.0 196,990 2.8 21 Changi North Way,
Singapore
APC Distrihub Ramp-up 31 March 2011 30.9 32.4 176,955 3.4 6 Changi North Way,
Singapore
C&P Changi Districentre 2 Cargo lift 12 April 2010 17.7 21.5 111,359 1.6 3 Changi South
Street 3, Singapore
Air Market Logistics Centre Cargo lift 19 August 2011 13.0 13.8 65,714 1.0 22 Loyang Lane,
Singapore
Kim Heng Warehouse Single storey 12 May 2011 8.9 9.4 54,449 0.8 4 Penjuru Lane,
Singapore
Jinshan Chemical Warehouse Single storey 15 June 2011 13.9
(¥71.0)
16.5
(¥79.0)
145,816 1.4 288 Gongchuang Road, Caojing Town, Jinshan District, China
Total 1,035.0 5,115,435 81.0

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.

Overview

High Occupancy in Underlying Portfolio

Cache enjoys close to full occupancy. This compares favorably with the Singapore industrial average occupancy rate of approximately 91.1%3.

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 Weighted Average Lease to Expiry (WALE) by gross floor area of the portfolio is 3.8 years4. 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

The weighted average unexpired lease term for the underlying leasehold land is 31.1 years.

  • The valuation as at 31 December 2013 was conducted by Jones Lang LaSalle, an independent valuer.
  • For the period 1 April 2013 to 31 December 2013.
  • JTC Corporation, Quarterly Market Report- Industrial Properties, 1Q 2014
  • This takes into account the initial 10-year lease with DHL Supply Chain Singapore Pte Ltd at DHL Supply Chain Advanced Regional Centre ("DSC ARC") which was announced on 14 April 2014.
  • All other information is provided as at 30 June 2014.