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 30 September 2016.
Strategically-Located Portfolio in Singapore, Australia and China
|as at||30 September 2016|
|19 Logistics Warehouse Properties||
12 - Singapore
6 - Australia
1 - China
|Total Valuation(1)||S$1.27 billion|
|Gross Floor Area (GFA)||7.51 million sf|
|Portfolio Committed Occupancy||96.5%|
|Average Building Age||10.6 years|
|Weighted Average Lease to Expiry (“WALE”)||4.0 years(2)|
|Weighted Average Land Lease Expiry||42.5 years (3)|
10 - Ramp-up
2 - Cargo Lift
7 - Single Storey
|Rental Escalations built into Master Leases||~1% to 4% p.a.|
|Number of Tenants||36|
- Based on independent valuation as at 31 December 2015 for all properties except 51 Alps Ave, Singapore. In relation to 51 Alps Ave, the fair market valuation of the property is as at 30 September 2016
- By Net Lettable Area
- For the purpose of presentation, freehold properties are computed using a 99-year leasehold tenure
|Gross Floor Area (sq ft)|
|CWT Commodity Hub||Ramp-up||12 April 2010||S$323.0||S$336.1||2,295,927|
|Schenker Megahub||Ramp-up||12 April 2010||S$99.0||S$80.7 (1)||439,789|
|Cache Changi Districentre 1||Ramp-up||12 April 2010||S$82.0||S$93.4||364,361|
|Cache Cold Centre
(formerly CWT Cold Hub)
|Ramp-up||12 April 2010||S$122.0||S$139.6||341,947|
|Pandan Logistics Hub||Ramp-up||3 July 2012||S$66.0||S$60.6||329,112|
|Hi-Speed Logistics Centre||Ramp-up||12 April 2010||S$69.5||S$82.0||308,632|
|Precise Two||Ramp-up||1 April 2013||S$55.2||S$49.8||284,384|
|Pan Asia Logistics Centre||Ramp-up||30 April 2012||S$35.2||S$37.0||196,990|
|Cache Changi Districentre 3
(formerly APC Distrihub)
|Ramp-up||31 March 2011||S$30.9||S$26.1||176,955|
|Cache Changi Districentre 2||Cargo lift||12 April 2010||S$17.7||S$18.2||111,359|
|Air Market Logistics Centre||Cargo lift||19 August 2011||S$13.0||S$13.1||67,564|
|DHL Supply Chain Advanced Regional Centre||Ramp-up||Received TOP in July 2015||N.A.||S$147.2||989,224|
|Jinshan Chemical Warehouse||Single storey||15 June 2011||S$13.9||16.9
|127 Orchard Road, Chester Hill, NSW||Single storey||27 February 2015||A$37.0||A$37.0||278,034|
|16-28 Transport Drive Somerton, VIC||Single storey||27 February 2015||A$22.3||A$25.0||229,047|
|51 Musgrave Road, Coopers Plains, QLD||Single storey||27 February 2015||A$10.7||A$9.6||102,172|
|203 Viking Drive, Wacol, QLD, Australia||Single storey||23 October 2015||A$27.0||A$27.0||143,839|
|223 Viking Drive, Wacol, QLD, Australia||Single storey||4 December 2015||A$9.58||A$9.6||67,555|
|404-450 Findon Road, Kidman Park, SA, Australia||Single storey||18 December 2015||A$57.3||A$57.3||632,869|
- All information provided as at 31 December 2015 except for the valuation of 51 Alps Ave, Singapore ("Schenker Megahub") which was updated as at 30 September 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.
High Occupancy in Underlying Portfolio
Cache enjoys a high occupancy of 96.5% as at 30 September 2016. This compares favorably with the Singapore industrial average occupancy rate of approximately 89.0%(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 2016, multi-tenanted properties contributed 39% of 1Q FY2016 Gross Rental Income while master-leased/ single-tenanted properties contributed to the balance 61%.
Minimal Renewal Risk from Long WALE
The Weighted Average Lease to Expiry (WALE) by net lettable area of the portfolio is 4.0 years(2). Cache's portfolio enjoys a high degree of predictability in its cashflow and earnings stability as more than 47% of the total portfolio leases (by NLA) are committed till FY2020 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.
- JTC Corporation, Quarterly Market Report- Industrial Properties, 2Q 2016
- As at 30 September 2016