A NEW real estate investment trust (Reit) is headed for a listing on the Singapore Exchange (SGX), this time investing in logistics properties.
Cache Logistics Trust (CLT) has obtained a letter of eligibility to list on the mainboard, said a statement from real estate fund management company ARA Asset Management, a major shareholder of the manager of the Reit, yesterday.
Reits earn income from the rents of properties they own, and make regular payments to unit holders.
CLT will be managed by ARA-CWT Trust Management – a joint venture
Reit management company owned 60 per cent by mainboard-listed ARA and 40 per cent by logistics company CWT.
The new Reit will start out with six logistics properties located in Singapore worth about $730 million, with a total gross floor area of 3.9 million sq ft and average lease periods of just over two years.
It will also have the right of first refusal to acquire logistics properties in the Asia-Pacific owned by CWT and its substantial shareholder C&P Holdings.
CLT aims to become the leading logistics Reit in the region by making full use of ARA’s expertise in Reit management, CWT’s logistics operational expertise, as well as both their networks and relationships in the Asia-Pacific, ARA said.
‘We are natural partners with complementary strengths,’ARA group chief executive John Lim said.
‘CLT marks ARA’s first foray into the industrial logistics sector and we will proactively look to expand our capabilities in this segment in both the public and private investment markets.’
The opportunity to boost the scale of an industrial logistics real estate fund management platform was immense, he said, adding that ARA was well-positioned to pursue growth in this area: ‘We continue to seek more strategic partners for collaborations to expand our Reit and fund management platforms into new sectors and geographies.’
CWT group CEO Loi Pok Yen also said the listing of CLT will boost his firm’s financial capacity and flexibility and enhance its ability to expand both regionally and globally: ‘We are confident that this partnership adds tremendous value to the platform and can help distinguish CLT as the leading logistics Reit in the Asia-Pacific region.’
ARA had total assets of $12.5 billion under management as of last September and is the manager of Suntec Reit and Fortune Reit, listed on the SGX.
It is also manager of Prosperity Reit, listed on the Hong Kong Stock Exchange, as well as AmFIRST Reit, listed on Bursa Malaysia, while CWT is a global provider of supply chain logistics solutions.
Source: Straits Times, 9 Feb 2010
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