ARA Asset Management Ltd has entered into a share purchase agreement to acquire ARA-CWT Trust Management, manager for Cache Logistics Trust and its property manager Cache Property Management, from CWT.

In a filing with the Singapore Exchange today, Cache Logistics Trust said, CWT currently owns 40 per cent and 60 per cent of the shares of the manager and its property manager, respectively.

“With our strong foothold in the Asia Pacific and extensive experience in managing REITs, we are confident that exercising our full management control over Cache represents a greater alignment of interest which will be beneficial to unitholders in the long-term,” said ARA group CEO, John Lim.

ARA-CWT Trust Management’s CEO Daniel Cerf commented: “The consolidation of interest and decision-making within a single entity in ARA is a significant development for Cache. Cache has demonstrated strong disciplined third-party acquisition growth since listing in 2010, having grown from approximately S$730 million ($542.2 million) to over S$1.4 billion ($1.03 billion) as at 31 March, 2018. We will continue to tap on ARA’s expanded network and resources in the Asia Pacific to further the growth of the REIT and its earnings.”

ARA is a premier global integrated real assets fund manager with about S$77.2 billion ($56.64 billion) in gross assets managed by ARA and its associates. Cache has embarked on a portfolio rebalancing and growth strategy through ARA’s expanding presence in the region, especially in Australia.

Cache was the first among industrial S-REITs to acquire a logistics warehouse in Australia in early 2015 and has since acquired 16 warehouses in total. Its Australian properties make up close to 30 per cent of the total portfolio valuation, outnumbering the Singapore portfolio in the first quarter of 2018.

ARA manages close to S$7 billion ($5.14 billion) in gross assets in Australia, which was a key contributor to Cache’s successful diversification strategy, said CWT.

Meanwhile, the consolidated interest in the property manager would entail good continuity in the management of Cache’s properties on a day-to-day basis by its key management staff.

Also read:

Singapore’s ARA Asset Management to acquire 19.5% in Cromwell Property

SG Realty:Global Premium Hotels to go private; Cache Logistics to buy Melbourne asset

The post SG: ARA acquires full control of Cache Logistics Trust’s manager from CWT appeared first on DealStreetAsia.