Cache Logistics Trust has lodged its listing prospectus with the Monetary Authority of Singapore, unveiling that the new REIT is hoping to fetch around $400 million through its IPO.
Based on the prospectus, Cache is offering 474.2 million units at 84-88 cents each.
Depending on the issue price, an 8.82- to 9.08-percent distribution yield has been forecasted for 2011.
Cache is managed by ARA-CWT Trust Management (ACT), which is 40 percent owned by CWT Ltd and 60 percent by ARA Asset Management Ltd.
Daniel Cerf, former deputy chief executive of K-REIT Asia Management, is the acting CEO of ACT. Mr Cerf, a licensed architect in the US, was the former general manager of special duties at Keppel Land.
Lim How Teck, who recently resigned as non-executive independent director of AIMS AMP Capital Industrial REIT Management, is the chairman and non-executive director of ACT.
Cache, a Singapore-based REIT, will mainly invest in logistics properties in the Asia-Pacific region as well as property-related assets.
Its initial portfolio of properties is comprised of six logistics warehouse properties in Singapore with a combined gross floor area (GFA) of 3.86 million sq ft and a value of around $730 million.
The properties are CWT Cold Hub, CWT Commodity Hub, C&P Changi Districentre, Schenker Megahub, C&P Changi Districentre and Hi-Speed Logistics Centre. These are part of a sale and leaseback agreement entered by Cache with CWT and C&P Holdings respectively.
Based on the prospectus, 94.1 percent of the initial portfolio is occupied by and contracted to 262 end-users, comprising international and domestic firms.
The largest end-user accounts for 16.1 percent of the total GFA of the initial portfolio. Altogether, the top five end-users account for 56.5 percent of the occupied GFA.
The master lessees for these properties are CWT and C&P Holdings. Direct counterparties of the master lessees occupy 79.1 percent of the occupied GFA, being third-party end-users and third-party logistics service providers.
CWT related entities contracted the remaining 20.9 percent of the occupied GFA. It has in turn been fully contracted for use by third-party end-users.
C&P Holdings is a significant shareholder of CWT, with a 35.9 percent stake.
The master lease agreements provide five to 10 year lease durations and a weighted average lease expiry of 6.4 years, with a triple net lease structure and locked-in annual rental escalations for the first five years of the initial contracted lease term.