Overview of Portfolio

Cache's portfolio comprises 19 high quality logistics warehouse properties strategically located in established logistics clusters in Singapore, Australia and China. The portfolio has a total gross floor area of approximately 7.5 million square feet valued at approximately S$1.3 billion as at 31 December 2015.

Strategically-Located Portfolio in Singapore, Australia and China

as at 31 December 2015
19 Logistics Warehouse Properties 12 - Singapore
6 - Australia
1 - China
Total Valuation S$1.308 billion
Gross Floor Area (GFA) 7.51 million sf
Portfolio Occupancy 94.9%
Average Building Age 10 years
Weighted Average Lease to Expiry (“WALE”) 4.4 years
Weighted Average Land Lease Expiry 43.6 years (1)
Property Features 10 - Ramp-up
2 - Cargo Lift
7 - Single Storey
Rental Escalations built into Master Leases ~1% to 4% p.a.
Number of Tenants 35

Notes:

  • Freehold properties are computed using a 99-year leasehold tenure.

All Properties

Overview

Property Name Property
Feature
Acquisition
Date
Purchase Price
(million)
Valuation
(million)
Gross Floor Area (sq ft) Address
Singapore
CWT Commodity Hub Ramp-up 12 April 2010 S$323.0 S$336.1 2,295,927 24 Penjuru Road
Schenker Megahub Ramp-up 12 April 2010 S$99.0 S$116.8 439,789 51 ALPS Avenue
Cache Changi Districentre 1 Ramp-up 12 April 2010 S$82.0 S$93.4 364,361 5 Changi South Lane
Cache Cold Centre (formerly CWT Cold Hub) Ramp-up 12 April 2010 S$122.0 S$139.6 341,947 2 Fishery Port Road
Pandan Logistics Hub Ramp-up 3 July 2012 S$66.0 S$60.6 329,112 49 Pandan Road
Hi-Speed Logistics Centre Ramp-up 12 April 2010 S$69.5 S$82.0 308,632 40 ALPS Avenue
Precise Two Ramp-up 1 April 2013 S$55.2 S$49.8 284,384 15 Gul Way
Pan Asia Logistics Centre Ramp-up 30 April 2012 S$35.2 S$37.0 196,990 21 Changi North Way
Cache Changi Districentre 3 (formerly APC Distrihub) Ramp-up 31 March 2011 S$30.9 S$26.1 176,955 6 Changi North Way
Cache Changi Districentre 2 Cargo lift 12 April 2010 S$17.7 S$18.2 111,359 3 Changi South Street 3
Air Market Logistics Centre Cargo lift 19 August 2011 S$13.0 S$13.1 67,564 22 Loyang Lane
DHL Supply Chain Advanced Regional Centre Ramp-up Received TOP in July 2015 N.A. S$147.2 989,224 1 Greenwich Drive
China
Jinshan Chemical Warehouse Single storey 15 June 2011 S$13.9 16.9
(¥77.3 million)
145,816 288 Gongchuang Road, Caojing Town, Jinshan District, Shanghai
Australia
127 Orchard Road, Chester Hill, NSW Single storey 27 February 2015 A$37.0 A$37.0 278,034 127 Orchard Road, Chester Hill, NSW
16-28 Transport Drive Somerton, VIC Single storey 27 February 2015 A$22.3 A$25.0 229,047 16-28 Transport Drive, Somerton, VIC
51 Musgrave Road, Coopers Plains, QLD Single storey 27 February 2015 A$10.7 A$9.6 102,172 51 Musgrave Road, Coopers Plains, QLD
203 Viking Drive, Wacol, QLD, Australia Single storey 23 October 2015 A$27.0 A$27.0 143,839 203 Viking Drive, Wacol, QLD, Australia
223 Viking Drive, Wacol, QLD, Australia Single storey 4 December 2015 A$9.58 A$9.6 67,555 223 Viking Drive, Wacol, QLD, Australia
404-450 Findon Road, Kidman Park, SA, Australia Single storey 18 December 2015 A$57.3 A$57.3 632,869 404-450 Findon Road, Kidman Park, SA, Australia
Total S$1,308 7,508,508

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 a high occupancy of 94.9% as at 31 December 2015. This compares favorably with the Singapore industrial average occupancy rate of approximately 92.5%(1) for warehouses.

Stability of Cash Flows from Long Term Master Leases

65% of gross revenue is derived from master lease agreements(2). The triple net ("NNN") master lease agreements provide for long lease tenures ranging from two to 13 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 net lettable area of the portfolio is 4.4years(3). 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 lease agreements are structured with built-in rental escalation of ~1% to 4% 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 43.6 years.

Notes:

  • JTC Corporation, Quarterly Market Report- Industrial Properties, 3Q 2015
  • Calculated based on 4Q 2015 Gross Revenue.
  • WALE by net lettable area.
  • The S$ equivalent figures are based on AUD/SGD exchange rate of A$1.00 = S$0.968.All other information is provided as at 31 December 2015.