SINGAPORE (Oct 22): The biggest shareholder of industrial landlord Cambridge Industrial Trust's manager is considering the sale of its 56% stake.
National Australia Bank group vehicle nabInvest Capital Partners (NAB) said it has received "non-binding expressions of interest" for its shares in Cambridge Industrial Trust Management (CITM), CITM said in a Singapore Exchange filing on Thursday right after posting the trust's third-quarter results.
The announcement comes after CITM’s second largest, Oxley Global, was also approached to sell its stake. CITM had said in an Aug 14 bourse filing that it “understands that Oxley Global ... has received several non-binding expressions of interest for all or part of its 24% effective stake”.
CITM said in its statement on Thursday that Oxley Global and NAB have both "informed the manager they are considering the offers", though it added that "neither NAB nor Oxley has entered into binding agreement(s) for the sale of their stakes".
NAB and Oxley Global together hold an indirect 80% stake in CITM. The third shareholder is Japanese conglomerate Mitsui, which holds 20%.
In the third quarter ended September, Cambridge Industrial Trust posted lower distribution despite a double-digit rise in net property income.
Distribution per unit fell to 1.204 cents, down 3.7% from the previous year, the trust said in a Singapore Exchange filing on Thursday.
This was on the back of a 1.6% slide in distributable income to $15.6 million year-on-year.
The decline occurred even though gross revenue jumped 13.8% to $28.5 million and net property income climbed 10.5% to $21.7 million for Q3.
The trust said that a lack of contribution from capital and capital gains in 3Q this year made distributable income less than the previous year's.
At 11.44am, Cambridge Industrial Trust is up 0.8% at 63.5 cents with 976 million shares traded.