A new real estate investment trust (REIT), intended to invest in logistics properties, is set to be listed on the Singapore Exchange (SGX).
According to ARA Asset Management, a property fund management firm, Cache Logistics Trust (CLT) has obtained a letter of eligibility to list on the mainboard.
REITs generate income from the rents of their properties, and make regular payments to unit holders.
CLT will be managed by ARA-CWT Trust Management, a joint venture REIT management firm which is 40 percent owned by logistics company CWT, and 60 percent owned by mainboard-listed ARA. With average lease periods of just over two years and a total gross floor area of 3.9 million sq ft, the new REIT will start out with six logistics properties located in Singapore, worth around $730 million.
It will also have the right of first refusal to purchase logistics properties owned by CWT and C&P Holdings in the Asia-Pacific region.
CLT aims to become the principal logistics REIT in the region by optimizing the expertise of ARA in REIT management, the logistics operational expertise of CWT, as well as both their relationships and networks in the Asia-Pacific region, said ARA.