Cache Logistics Trust (K2LU.SG) heads above 88 cents IPO price on SGX debut, last at 97 cents on robust volume after opening at 99.5 cents. Logistics REIT’s 8.7% FY10 dividend yield widely regarded by investors as key investment merit.

“They may not be as reputable as Mapletree Logistics and Ascendas REIT, but they’re compensating for it with a higher yield of more than 8%,” a dealer at foreign brokerage told Dow Jones.

DMG says Cache’s higher occupancy rate of 94.1% for its portfolio of six Singapore properties, vs 90% average rate for industrial sector, also supportive: “The assets are well located in established logistics clusters, near air and sea transportation ports.”

Cache’s price performance in sharp contrast to Debao Property Development (K2M.SG), which started trading in morning but hasn’t been able to head above its 43 cents IPO price; last at 39.5 cents.

Orderbook quotes suggest minimal upside beyond $1 for Cache. Mapletree (M44U.SG) +1.2% at 84.5 cents, Ascendas REIT (A17U.SG) flat at $1.95.