Cambridge Industrial Trust's manager says to conduct strategic review

The manager of Cambridge Industrial Trust will look into buying assets in Singapore, Australia and Japan.
The manager of Cambridge Industrial Trust will look into buying assets in Singapore, Australia and Japan.ST PHOTO: LIM YAOHUI FOR THE STRAITS TIMES

SINGAPORE (REUTERS) - The manager of Cambridge Industrial Trust said on Thursday (Jan 14) it will look into buying assets in Singapore, Australia and Japan, as well as conduct a strategic review of the property trust's business and operations.

Cambridge Industrial, which has a market valuation of about US$486 million (S$699.7 million), owns assets such as warehouses and logistics properties. It reported a 9 per cent drop in its fourth-quarter distribution per unit on Thursday.

Bankers say falling market valuations and higher interest rate expectations are set to stoke prospects for mergers and acquisitions in Singapore's property trust sector.

Private equity investors Blackstone Group and Gaw Capital Partners are weighing separate bids for Singapore's Ascendas Hospitality Trust, people familiar with the matter said last week.

Cambridge Trust had last year said its manager's main owners, Oxley Global and National Australia Bank, had received expressions of interest for their combined 80 per cent holding, but added on Thursday that no transaction had taken place.