SINGAPORE (Oct 31): The trustee manager of Cache Logistics Trust and tenant Schenker has agreed to an amicable resolution of the dispute in relation to the property at 51 Alps Avenue, otherwise known as Schenker Megahub.

See: Schenker dispute remains key overhang for Cache Logistics Trust

“The trustee and Schenker have, with the approval of JTC Corporation, entered into a fresh lease agreement where Schenker will lease 100% of the property for a period of 46 months commencing from Nov 1 till Aug 31, 2021,” says Cache’s trustee manager in a filing.

As part of the resolution, the trustee will also receive a lump-sum payment of $8.2 million which would be used to top-up the payment received to market rent during the holding arrangement from Sept 1 2016 to Oct 31, to top up the rental from Nov 1 to Aug 31 2021 and to pay other associated costs.

Assuming that the above was arrangements was in place from Jan 1 and based on the unaudited 2017 first three quarters financial results of Cache, the distribution per unit (DPU) for the period from Jan 1 to Sept 30, would be 5.454 cents instead of 5.141 cents as reported.

Daniel Cerf, CEO of the manager, says: “We are pleased with the positive outcome as unitholders will be receiving market rental for the property during the period of the holding arrangement as well as under a new lease with Schenker with a term extending to August 2021. The property will remain fully-occupied by Schenker, a longstanding end-user, and with the new lease, the portfolio WALE will be extended from 3.3 years to 3.6 years.”

Units in Cache closed at 82 cents on Tuesday.