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|
|Average Building Age||10 years|
|Weighted Average Lease to Expiry (“WALE”)||4.4 years|
|Weighted Average Land Lease Expiry||43.6 years (1)|
10 - Ramp-up
2 - Cargo Lift
7 - Single Storey
|Rental Escalations built into Master Leases||~1% to 4% p.a.|
|Number of Tenants||35|
- Freehold properties are computed using a 99-year leasehold tenure.
|Gross Floor Area (sq ft)||Address|
|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|
|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$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|
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 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.
- 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.