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 7.6 million square feet valued at approximately S$1.2 billion as at 30 September 2017.

Strategically-Located Portfolio in Singapore, Australia and China

Property Portfolio Statistics As at 30 September 2017
19 Logistics Warehouse Properties 11 - Singapore
7 - Australia
1 - China
Total Valuation(1) S$1.23 billion
Gross Floor Area (GFA) 7.6 million sf
Portfolio Committed Occupancy 97.3%
Average Building Age 12.0 years
Weighted Average Lease to Expiry (“WALE”) by NLA 3.3 years
Weighted Average Land Lease Expiry 43.9 years (2)
Property Features 9 - Ramp-up
2 - Cargo Lift
8 - Single Storey
Rental Escalations built into Master Leases ~1% to 4% p.a.
Number of Tenants 40

Notes:

  • Based on an exchange rate of S$1.00 = A$0.9402 and S$1.00 = RMB 4.8900, and annual independent valuations of our properties as at 31 December 2016
  • For the purpose of presentation, freehold properties are computed using a 99-year leasehold tenure

All Properties

Overview

Property Name Property
Feature
Acquisition
Date
Purchase Price
(million)
Valuation as
at 31 December 2016 (million)
Gross Floor Area (sq ft)
Singapore
CWT Commodity Hub Ramp-up 12 April 2010 S$323.0 S$328.0 2,295,927
Schenker Megahub Ramp-up 12 April 2010 S$99.0 S$80.9 439,956
Cache Changi Districentre 1 Ramp-up 12 April 2010 S$82.0 S$95.2 364,361
Cache Cold Centre Ramp-up 12 April 2010 S$122.0 S$130.0 344,861
Pandan Logistics Hub Ramp-up 3 July 2012 S$66.0 S$50.0 329,112
Hi-Speed Logistics Centre Ramp-up 12 April 2010 S$69.5 S$71.0 308,632
Precise Two Ramp-up 1 April 2013 S$55.2 S$46.7 284,384
Pan Asia Logistics Centre Ramp-up 30 April 2012 S$35.2 S$36.3 196,990
Cache Changi Districentre 2 Cargo lift 12 April 2010 S$17.7 S$18.1 111,359
Air Market Logistics Centre Cargo lift 19 August 2011 S$13.0 S$12.0 67,564
DHL Supply Chain Advanced Regional Centre Ramp-up Received TOP in July 2015 N.A. S$150.3 989,260
China
Jinshan Chemical Warehouse Single storey 15 June 2011 S$13.9 S$16.37
(¥78.5 million)
145,816
Australia
127 Orchard Road, Chester Hill, NSW Single storey 27 February 2015 A$37.0 A$40.00 278,034
16-28 Transport Drive Somerton, VIC Single storey 27 February 2015 A$22.3 A$24.00 229,047
51 Musgrave Road, Coopers Plains, QLD Single storey 27 February 2015 A$10.7 A$8.35 102,172
203 Viking Drive, Wacol, QLD Single storey 23 October 2015 A$27.0 A$28.0 143,839
223 Viking Drive, Wacol, QLD Single storey 4 December 2015 A$9.58 A$10.75 67,555
404-450 Findon Road, Kidman Park, SA Single storey 18 December 2015 A$57.3 A$57.5 632,869
217-225 Boundary Road, Laverton North, VIC Single storey 22 March 2017 A$22.25 - 223,061

Notes:

  • This includes the divestment of Cache Changi Districentre 3 which was announced on 19 December 2016 and was pending legal completion as at 31 December 2016.

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, food and cold storage, aerospace, healthcare, automotive and materials, engineering and construction.

Overview

High Occupancy in Underlying Portfolio

Cache enjoys a high committed portfolio occupancy of 97.3% as at 30 September 2017. This compares favorably with the Singapore industrial average occupancy rate of approximately 87.5% (1) for warehouses.

With some of the best-in-class warehouse properties and its proactive marketing strategy, Cache continues to draw robust demand for logistics space from 3PLs and other logistics operators.

Greater Balance Between Master Leases and Multi-Tenancies

Over time, Cache achieved a more balanced mix of master-leased and multi-tenanted properties. Master-leased properties provide portfolio stability with their typically longer lease periods while multi-tenanted properties enable Cache the ability to ride on potential rental upsides during a buoyant rental market due to typically shorter lease periods.

The current master lease agreements in Singapore are structured with predominantly triple-net rental and built-in rental escalation of between 1% and 2% per annum over the lease term. For the Australian assets, the master lease arrangements come with built-in annual rental escalations of between 3% and 4%, or tied to the local Consumer Price Index, whichever is higher.

As at 30 September 2017, multi-tenanted properties contributed 42% of 3Q FY2017 Gross Rental Income while single-tenanted properties contributed to the balance 58%.

Minimal Renewal Risk from Long WALE

The Weighted Average Lease to Expiry (WALE) by net lettable area of the portfolio is 3.3 years (2). Cache's portfolio enjoys a high degree of predictability in its cashflow and earnings stability as about half of all leases are committed till 2020 and beyond.

Additional Confidence through Security Deposits

Security deposits underpinning the rental obligation average 3 to 12 months. This provides additional confidence in our cashflow.

Notes:

  • JTC Corporation, Quarterly Market Report- Industrial Properties, 3Q 2017
  • As at 30 September 2017