Cambridge Industrial Trust to acquire warehouse for S$35.5m

By CARINE LEE


Cambridge Industrial Trust on Monday announced that it will purchase an industrial building on Toh Guan Road East for a purchase consideration of S$35.5 million.

The property, a five-storey warehouse building with an ancillary office, has a gross floor area of approximately 17,917 sqm. It is a JTC leasehold estate of 30+30 years tenure commencing from February 16, 1991.

Cambridge Industrial said it believes the property will enhance its overall portfolio and further reduce its reliance of income stream on any single asset and tenant.

The Trust intends to fund the acquisition through a combination of 60 per cent cash and 40 per cent debt, and expects to use part of the proceeds from previous equity fund-raising exercises to fund the purchase.

The acquisition is expected to be completed by the first quarter of 2012.

CIT’s distributable income increases and portfolio revalues upwards.

Key highlights include:


• 2Q2011 amount available for distribution was S$12.3 million as compared to S$11.9 million for 1Q2011. This translated to a 2Q2011 distribution per unit (“DPU”) of 1.036 cents, which is 3.5% more than 1Q2011 DPU of 1.001 cents.

• Portfolio valuation as at 30 June 2011 resulted in an increase of 5.5%, or S$47.8 million, on a like-for-like basis, from the 31 December 2010 valuation. CIT’s total assets stand at S$1.1 billion as at 30 June 2011.

In addition, as previously disclosed to the market, the following items were completed during the quarter:

• Secured a S$320.0 million new term loan facility with a syndicate of four financial institutions. All-in debt cost is approximately 4.23% p.a.

• Completed the acquisitions of 4 & 6 Clementi Loop and 60 Tuas South Street 1 with a total valuation of S$46.4 million.

• Concluded a fully underwritten and renounceable Rights Issue with approx. 132.1 million new Rights Units issued on 15 April 2011 raising S$56.7 million.

nabInvest supports Cambridge Industrial Trust’s Rights Issue

Singapore, 10 March 2011 - Cambridge Industrial Trust Management Limited (“CITM”), as manager (the “Manager”) of Cambridge Industrial Trust (“CIT”), advises that, in connection with the Rights Issue currently being undertaken, it has received an irrevocable undertaking from nabInvest Capital Partners Pty Limited (“NCP”), as manager of Antares nabInvest Trust (“AnIT”), that AnIT will subscribe for its pro rata entitlement of Rights Units under the Rights Issue. AnIT is the beneficial owner of an aggregate of 14.04 million units (the “Relevant Units”) representing 1.3% of the total Units in issue in CIT. NCP has also agreed that AnIT will not, and will procure that the registered owner holding such Relevant Units on behalf of AnIT will not, take any action inconsistent with that undertaking during the period up to and including the date on which the Rights Units are listed on the SGX-ST, without the prior written consent of the Manager and the Underwriter.


Mr Chris Calvert, CEO and Executive Director of the Manager, said, “We are pleased to receive the undertaking from NCP which shows nabInvest’s strong support and confidence in CIT and the Rights Issue. NCP and its parent company, National Australia Bank Limited, are valued partners as well as unitholders of CIT through AnIT. We look forward to their continued support.”