Extracted from Annual Report 2012
About Cache Logistics Trust
Cache Logistics Trust ("Cache") is a Singapore-based Real Estate Investment Trust ("REIT") which invests in quality income-producing real estate used for logistics purposes, as well as real estate-related assets, in Asia-Pacific1.
Cache was constituted on 11 February 2010 under a trust deed entered into between ARA-CWT Trust Management (Cache) Limited (the "Manager") and HSBC Institutional Trust Services (Singapore) Limited (the "Trustee"). It was officially listed on the Mainboard of the Singapore Exchange Securities Trading Pte Ltd ("SGX-ST") on 12 April 2010 and has a market capitalisation of approximately S$1.01 billion as at 31 March 2013.
As at 31 March 2013, its portfolio of 12 high quality logistics warehouse properties are strategically located in established logistics clusters in Singapore and China, with a total Gross Floor Area ("GFA") of 4.83 million square feet and a property value of approximately S$972 million. Its investment strategies include:
Pursue acquisition opportunities that provide attractive cash flows and yields relative to Cache's weighted average cost of capital, and opportunities for future income and capital growth.
Active Asset Management
Mitigate re-leasing risks and grow organically, thereby increasing the yield of its properties, and correspondingly, the NAV per Unit.
Prudently undertake development activity when appropriate opportunities arise, while mitigating construction and leasing risks.
Prudent Capital and Risk Management
Employ an appropriate mix of debt and equity in financing acquisitions, and utilise interest rate and currency hedging strategies where appropriate. It also includes freeing up capital for re-deployment.
About The Manager
ARA-CWT Trust Management (Cache) Limited is a joint-venture REIT management company between ARA Asset Management Limited ("ARA") and CWT Limited ("CWT").
ARA, an affiliate of the Cheung Kong group, is a real estate fund management company listed on the main board of the Singapore Exchange. ARA currently manages REITs listed in Singapore, Hong Kong and Malaysia with a diversified portfolio spanning the office, retail, industrial/office and logistics sectors; private funds investing in real estate and real estate-related securities in Asia; and provides real estate management services, including property management services and convention & exhibition services; and corporate finance advisory services.
CWT is a leading provider of integrated logistics solutions for worldwide customers in the commodities, chemical and petrochemical, food & beverage, marine, oil & gas, defence and industrial sectors. CWT designs, engineers and manages unique and effective supply chain solutions leveraging its in-depth domain knowledge, innovative capabilities and global logistics infrastructure. Through its global network, the CWT Group is able to connect customers to 120 ports and over 1,200 destinations seamlessly around the world. Headquartered in Singapore, the CWT Group also engages in coal and base metals supply chain management and provides engineering services for building, facilities and equipment fleet as well as financial services through the asset management of Cache Logistics Trust and brokering services for futures and derivatives trades. The largest logistics service provider listed in Southeast Asia, CWT is traded on the Singapore Exchange under the stock symbol CWT.
The Manager aims to provide Unitholders with regular and stable distributions, long term growth in Distribution Per Unit ("DPU") and Net Asset Value ("NAV") per Unit, while maintaining an appropriate capital structure.
1 Cache's Asia Pacific investment mandate includes Singapore, Malaysia, Indonesia, Philippines, Thailand, Vietnam, China, India, Hong Kong, Macau, Taiwan, Japan, Korea, Australia and New Zealand.