Overview of Portfolio
Cache's portfolio comprises 17 high quality logistics warehouse properties (including the ongoing build-to-suit logistics warehouse development for DHL Supply Chain Singapore) strategically located in established logistics clusters in Singapore, Australia and China. The portfolio has a total gross floor area of approximately 6.7 million square feet and a portfolio value of approximately S$1.2 billion as at 31 March 2015.
Strategically-Located Portfolio in Singapore, Australia and China
|as at||31 December 2014|
|Number of Properties||
13 - Singapore (incl DSC ARC under development)
1 - China
3 - Australia
|Total Valuation||S$1.2 bil|
|Gross Floor Area (GFA)||6.7 mil sf (incl DSC ARC)|
|Number of Tenants||
15 tenants (including DHL Supply Chain)
- 13 master leases
- 9 multi-tenanted leases
|Building Age||8.3 years|
|Weighted Average Lease to Expiry (“WALE”)||4.5 years (incl DSC ARC)|
|Weighted Average Land Lease Expiry||36.6 years (incl DSC ARC)(1)|
10 - Ramp-up (incl DSC ARC)
2 - Cargo Lift
5 - Single Storey
|Rental Escalations built into Master Leases||~1% to 3.50% p.a.|
|Gross Floor Area (sq ft)||Address|
|CWT Commodity Hub||Ramp-up||12 April 2010||S$323.0||S$364.7||2,295,927||24 Penjuru Road|
|Schenker Megahub||Ramp-up||12 April 2010||S$99.0||S$115.3||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$139.0||341,947||2 Fishery Port Road|
|Pandan Logistics Hub||Ramp-up||3 July 2012||S$66.0||S$65.1||329,112||49 Pandan Road|
|Hi-Speed Logistics Centre||Ramp-up||12 April 2010||S$69.5||S$81.5||308,632||40 ALPS Avenue|
|Precise Two||Ramp-up||1 April 2013||S$55.2||S$56.1||284,384||15 Gul Way|
|Pan Asia Logistics Centre||Ramp-up||30 April 2012||S$35.2||S$36.8||196,990||21 Changi North Way|
|Cache Changi Districentre 3 (formerly APC Distrihub)||Ramp-up||31 March 2011||S$30.9||S$32.1||176,955||6 Changi North Way|
|Cache Changi Districentre 2||Cargo lift||12 April 2010||S$17.7||S$20.4||111,359||3 Changi South Street 3|
|Air Market Logistics Centre||Cargo lift||19 August 2011||S$13.0||S$14.2||67,564||22 Loyang Lane|
|Kim Heng Warehouse||Single storey||12 May 2011||S$8.9||S$9.0||54,449||4 Penjuru Lane|
|DHL Supply Chain Advanced Regional Centre||Ramp-up||Under development||N.A.||S$93.6||989,224||1 Greenwich Drive|
|Jinshan Chemical Warehouse||Single storey||15 June 2011||S$13.9||16.9
|145,816||288 Gongchuang Road, Caojing Town, Jinshan District, Shanghai|
|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$22.3||229,047||16-28 Transport Drive, Somerton, VIC|
|51 Musgrave Road, Coopers Plains, QLD||Single storey||27 February 2015||A$10.7||A$10.7||102,172||51 Musgrave Road, Coopers Plains, QLD|
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.
High Occupancy in Underlying Portfolio
Cache enjoys a high occupancy of 99.1 % as at 31 March 2015. This compares favorably with the Singapore industrial average occupancy rate of approximately 91.8%3 for warehouses.
Stability of Cash Flows from Long Term, Triple Net Master Leases
13 properties are on master lease agreements4. The triple net ("NNN") master lease agreements provide for long lease tenures ranging from two 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 lettable area of the portfolio is 4.5 years5. 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 are structured with built-in rental escalation of ~1% to 3.50% 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 36.6 years1.
- Assumes freehold properties (e.g. those located in Australia) are considered 99-year leasehold in tenure
- The S$ equivalent figures are based on AUD/SGD exchange rate of A$1.00 = S$1.0461.
- JTC Corporation, Quarterly Market Report- Industrial Properties, 4Q 2014
- 3 properties, namely Cache Cold Centre (formerly CWT Cold Hub), Cache Changi Districentre 1, Cache Changi Districentre 2 will be converting to multi-tenanted properties in April 2015
- 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")
- All other information is provided as at 31 March 2015.