SINGAPORE (July 21): Maybank Kim Eng maintains its “buy” recommendation for Cache Logistics Trust with an unchanged target price of 94 cents, despite the ongoing rent disputes at its Schenker Megahub.

To recap, Schenker Megahub is currently master-leased to C&P, which in turn has an anchor lease with Schenker. Both leases are due for renewal in Aug. Schenker had exercised an option it believes to be valid, with C&P to renew its anchor lease for another five years at a “pre-agreed rental rate”. Cache believes that pre-agreed rental rate is below market rate and C&P is said to be contesting the validity of the option.

There were concerns that if C&P did not renew its master lease with Cache while Schenker’s option was upheld, Cache could be left with a below-market-rent property for five years.

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