Singapore listed logistics REIT Cache Logistics Trust (dividend yield 9%) 2 days ago announced that they will be selling of Changi Districentre 3.
We take a snapshot of this divestment and cover:
- How we can evaluate a REIT manager’s acumen from their past strategic decisions
- Is Cache making a profit on this divestment?
- Does it make sense to acquire a property that has such a short land lease?
- Does the value of the property go down over these 4.5 years?
- The performance of this acquisition and divestment
- What we should be wary about when evaluating performance of a property asset from 2 different point of view
- Why would someone buy such a short lease property
Changi Districentre 3 was bought in 2011 together with another property subsequently after IPO.
The price when Cache purchased was roughly SG$32 mil and it was debt funded. I think we will …