The market has reacted badly on CACHE's private placement and the Paris terror attacks made sentiments worse. The private placement of units was done at $0.94, so I believe CACHE is being oversold. Today, the price reached $0.905, which is significantly lower than the private placement price. Hence, I seized this opportunity to accumulate more units.
As promised by the management, CACHE utilised part of the funds raised by the private placement to acquire a new logistics facility in Adelaide, Australia. This latest acquisition looks to be yield-accretive. It is a freehold property with 8.9% NPI yield and WALE of 4.6 years. Furthermore, the deal is a triple net lease structure with annual rental escalation built in. I like the swiftness in the management's execution. They accomplished what they promised efficiently. The gearing stays healthy at 35%.
Looking forward to full rental contributions from the newly-completed ......