Cache Logistics makes first Australian acquisitions
Cache Logistics Trust has announced it has entered into separate sale and purchase agreements to acquire three distribution warehouses in Australia for AU$70 million.
The total acquisition cost is approximately AU$75.6 million including stamp duty and other transaction expenses. The properties are being acquired from McPhee Development, Larapinta Logistics and Sonton.
McPhee Distribution Services will leaseback an initial 60.6 percent of the total area of the properties from the date of closing, increasing to 83.2 percent from April 2018. Strategically located on freehold land with a total gross letting area of approximately 56,601 square metres (609,253 square feet), and in established locations with easy accessibility to ports, airports and/or city centres, the portfolio of three distribution warehouses will be 100 percent leased to high quality tenants such as McPhee Distribution Services, Linfox Australia and Stirling Holdings for 9.7 years.
The proposed acquisitions mark Cache’s first investment in Australia, leveraging on growth in major trade and distribution cities of Melbourne, Sydney and Brisbane.
Daniel Cerf, Chief Executive Officer of the parent company, said: “This strategic investment into Australia is in line with the Cache’s growth strategy to provide our unitholders with long-term stable distributions. The addition of three quality distribution warehouses on freehold land will not only strengthen the portfolio, but also provide income and geographical diversification.
“These, being our first acquisitions in Australia, further demonstrate our interest in continuing to grow Cache accretively and in a prudent manner. We are pleased to have found a good partner in our dealings with McPhee Distribution Services and would like to thank them for the opportunity to work together.”
McPhee Distribution Services, established since 1923, is a fourth generation Australian-owned transport family business which specialises in providing warehousing and distribution services in Australia. Linfox is Australia’s largest privately-owned logistics company that is rapidly expanding throughout Asia and New Zealand, and boasts more than 23,000 staff in ten countries.
Jay McPhee, Managing Director of McPhee Group of Companies, commented: “The McPhee Group is very appreciative of the strong, positive working partnership with Cache Logistics Trust. As the McPhee Group continues to expand in Australia, we hope to strengthen our relationship with Cache on other potential business opportunities.”
For more information, please visit: http://www.cache-reit.com/news_pressReleases.html