Buys accretive China warehouse
The news: Cache Logistics Trust (CLT) is buying a 13,547 sqm (gfa) chemical warehouse facility in Shanghai for RMB71m. The facility is located in the Jinshan District, within one of the largest petrochemical bases in Asia, the Shanghai Chemical Industrial Park.
Our thoughts: This acquisition marks the company’s entry into China. We believe this acquisition will allow CLT to diversify its income base from a geographical perspective, as well as capture the upside of China’s growth in the chemical logistics business. The acquisition is expected to be accretive, with DPU likely to expand 0.03S¢ per unit. We do not have a rating on the counter.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment