Cache may acquire 10 logistics properties in Australia for $205m

Cache might need to raise between $50m to $70m of equity.

Australian real estate firm Blackstone is potentially selling 10 logistics properties to ARA Asset management which could be Cache Logistics Trust (Cache).

According to DBS Equity Research, which cited a report from the Australian Financial Times, the 10 properties could be worth up to for A$200m or $205m.

The portfolio yield is reportedly at 6.3%.

DBS Equity Research has not priced in this deal given uncertainty of timing of deal completion.

Assuming that the REIT acquires the portfolio at the reported price, Cache might need to raise between $50m to $70m of equity, post EFR gearing of 36%-38%, with a potential distribution per unit (DPU) accretion of up to 1.3%-1.9%.