Cache Logistics Trust IPO

I'm puzzled at the timing of this Cache Logistics Trusts or CLT to be listed in Singapore stock markets. Then again, there is no exact dates mentioned in any of the news reports so far. Perhaps this could be a hype being (attempted to be) built on.

Mainboard-listed ARA Asset Management and CWT said their joint venture REIT has obtained a letter of eligibility to list its units on the Singapore Exchange (SGX).

The joint venture REIT, called Cache Logistics Trust or CLT, will invest principally in logistics properties in the Asia Pacific region.

It will be managed by ARA-CWT Trust Management, which is 60 per cent owned by ARA and 40 per cent by CWT.

CLT will have an initial portfolio of six high quality logistics properties located in Singapore valued at about S$730 million.

It will also have a right of first refusal to acquire logistics properties in the Asia-Pacific region owned by CWT and its substantial shareholder, C&P Holdings.

From Channel NewsAsia, "ARA-CWT joint venture REIT gets go-ahead to list units on SGX". (08/02/10)

Cache Logistics Trust, a REIT investing principally in logistics properties in the Asia Pacific region, has obtained a letter of eligibility to list on the SGX. CLT will have an initial portfolio of six properties located in Singapore and valued at S$730m (US$513m). The REIT will be managed by ARA-CWT Trust Management, a joint venture owned 60% by ARA and 40% by CWT. The two are currently speaking to banks ahead of appointing underwriters.

From ifrasia, "Cache Logistics Trust Talking To Banks Ahead Of SGX Listing". (08/02/10)

CWT, the global supply chain logistics solutions provider, says it is planning a sale and leaseback agreement of CWT Commodity Hub and CWT Cold Hub in connection with the listing of Cahe Logistics Trust (CLT).

Both logistics facilities, with a total value of $443 million, are part of CWT’s primary assets and close to PSA Terminals, major ports and central business district.

CWT says $65 million will be settled in the form of CLT units and the balance in cash. Given the current net book value of the properties, the disposal is expected to result in a one-off gain of $157.7 million.

The sales proceeds will be used to expand CWT’s logistics business and for early settlement of outstanding borrowings.

The setting up of CLT will be the first of its kind in Asia to capitalise on the positive outlook of the global logistics sector and the synergistic business models of CLT and CWT.

“CLT is also expected to leverage on the rights of first refusal granted by CWT and the strengths of CWT to pursue yield accretive acquisitions to achieve long term, regular and predictable distributable income for unitholders,” says CWT in an SGX statement.

The proposed trust holds an investment mandate that targets logistics properties in the Asia Pacific region, with an initial portfolio of six high quality logistics properties in Singapore, including CWT Commodity Hub and CWT Cold Hub.

“The creation of CLT to invest in yield-accretive logistics properties in Asia is a historic milestone and enables CWT to own a capital-efficient asset-owning vehicle to complement our core logistics business operations as well as enhance the Group’s ability to expand its business regionally and globally,” said Loi Pok Yen, Group CEO of CWT. “In addition, the sale and leaseback will enable the Group to participate in CLT through its holdings of CLT units and derive a stable income stream from CLT's distributions.”

From The Edge, "CWT plans sale and leaseback of 2 properties to prepare for Cache Logistics Trust listing". (01/02/10)



Update on 01/04/10: Cache Logistics Trust expects to raise S$417.2m from its IPO. It's priced at $0;88 & the trading date is to be on 12/04/10.

Cache Logistics Trust expects to raise some S$417 million from its initial public offering.

The IPO, launched on Thursday, is the first logistics real estate investment trust to be listed in more than two years.

CLT is a joint real estate investment unit of CWT and ARA Asset Management.

It's offering more than 470 million units at 88 cents each.

The IPO is priced at the higher end of the 84 cents to 88 cents indicative range but Mr John Lim, chief executive officer of ARA Asset Management said that he remains confident that it will still attract "overwhelming demand."

There are currently six properties in CLT's portfolio.

They are located near Changi Airport, PSA Corp's terminals and Jurong Port.

With a total gross floor area of 3.9 million square feet, the properties include ramp-up warehouses - a multi-storey feature that CLT's chief executive officer Daniel Cerf believes will maximise plot ratio and boost its resilience as a logistics REIT.

Earlier this year, CWT sold two properties in Singapore to CLT for S$445 million, with the REIT funding the purchase through a combination of shares and cash.

CLT plans to use its IPO proceeds to fund new properties and working income.

The units are expected to start trading on the Singapore Exchange mainboard on April 12.

Macquarie Capital, Standard Chartered and DBS Bank are underwriters and joint global co-ordinators of the IPO.

From Channel NewsAsia, "Cache Logistics Trust expects to raise S$417.2m from its IPO".



Update on 12/04: one of the top 20 Volume stocks & closed (quite) impressively at 95.5 cents. Compare that with its IPO price of 88 cents.

0 comments:

Post a Comment

Blog Archive