Cache Logistics’ key acquisitions to boost 2013 run

Check out how much its acquisition target is.

According to DBS, Cache Logistics Trust’s acquisitions are the next frontier of growth. DBS adds, Armed with a Pan Asian mandate, management continues to see opportunities to acquire in the region.

"However, the near term focus remains in Singapore and management is seeing that there are potential targets that are able to add value to the trust, on top of having a visible acquisition pipeline (under construction or incubation) available from its sponsor CWT and C&P holdings, totalling c4.5m sqft (or a potential doubling of Cache’s current portfolio). “

Here’s more:

Increasing acquisition target to S$200m. Returns that management is targeting to achieve are in the range of c7.0-7.5%, which is a positive spread compared to its current implied yield 6.0%. This means that acquisitions are likely to be value accretive to the trust and we believe that management will be keen to utilise the current low cost of equity to part fund its growth ambitions.  

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