Cache Log’s DPU and gearing hang in the balance pending court resolution

SINGAPORE (Sept 28): DBS Group Research is downgrading Cache Logistics Trust to “hold” with an unchanged target price of 93 cents, after the trust accepted a holding agreement with Schenker Holdings over the lease of the property at 51 Alps Avenue or Schenker Megahub.

Under the terms of holding agreement, Schenker will pay Cache 77 cents psf per month, which is the pre-agreed rent between C&P, the original master-leasee, and Schenker, the anchor tenant of the property. Cache says the holding agreement does not constitute a lease agreement and is subject to change, pending the final resolution of court proceedings.

To recap, Cache had filed a lawsuit against C&P, the late master leasee of Schenker Megahub, for its failure to deliver vacant possession of the property at the end of the master lease in August. The penalty under the master lease agreement was for the leasee to pay double the monthly rent to Cache, though the eventual enforcement of such penalty payment is subject to the final ruling by the Court.

---

Related Stories

• Brokers’ Digest: CDL, PropNex, PLife REIT, KIT, SingPost, Grand Banks Yachts, Nio, Frencken, ST Engineering, UOB
• Prospects of better FY2025 earnings inspire new ideas for ThaiBev
• Lim & Tan Securities maintains ‘buy’ on Grand Banks Yachts; almost doubles TP to $1.05

---