SINGAPORE - Cache Logistics Trust said Tuesday that it has sold its Kim Heng Warehouse to JTC Corporation for $9.7 million, a 9 per cent premium over the original acquisition price.
The single-storey warehouse, located at 4 Penjuru Lane within Jurong industrial estate, has a land area of 87,000 square feet and a gross floor area of 54,000 sq ft. The remaining land lease tenure is approximately 27 years.
The property, acquired in 2011 for $8.9 million, was valued at about $9 million as at Dec 31, 2014.
Said Mr Daniel Cerf, CEO of the Reit's manager, ARA-CWT Trust Management Ltd: "Kim Heng Warehouse is the smallest property in our portfolio. Despite potential for redevelopment, given the property's limited future income growth and considering the offer at hand, strategically divesting optimises returns and provides Cache with opportunity to recycle its capital. This is in line with the manager's proactive asset management strategy."
The transaction will be completed by this month, and the sale proceeds will be used to reduce existing debt, for general and corporate working capital and for distribution to unitholders.
After the divestment, Cache owns 16 logistics warehouse properties in Singapore, Australia and China, with a total value of $1.2 billion and gross floor area of 6.7 million sq ft.