Cambridge Industrial Trust Divest 23 Tuas Avenue 10

23 Tuas Avenue 10

On 11th April 2016, Cambridge Industrial Trust announced the plans to divest 23 Tuas Avenue 10 for S$16.5 million. The original price that Cambridge Industrial Trust bought the asset was S$8.55 million. This represents a gain of almost double the original price.

The proceeds from the divestment will be used to pare down debt and gearing (current 36.9%), and provide funds for potential growth opportunities locally and overseas.

Cambridge Industrial Trust Management Limited has indicated their strategy for FY2016 are

  1. Divestment of non-core assets
  2. Asset enhancement initiatives for existing assets
  3. Repaying debt and reducing gearing
  4. Acquisition of quality assets both locally and overseas

Chief Operating Officer and Chief Financial Officer for Cambridge Industrial Trust Quits

Resignation

Today, on 15th January 2016, Cambridge Industrial Trust announces the resignation of Mr David Mason who is the Chief Operating Officer and Chief Financial Officer for Cambridge Industrial Trust. He will remain in the company until April 2016 to facilitate a smooth transition.

The above news came sudden, a day after Cambridge Industrial Trust announces a fall in DPU (Cambridge Industrial Trust DPU Fall for 4QFY15). The news may or may not cause further fall in current closing share price of S$0.53, depending on investor’s confidence.

Cambridge Industrial Trust is currently, facing headwinds caused by vacancies and earnings weakness arising from property conversions from single-tenanted to multi-tenanted.