SINGAPORE - EC World Real Estate Investment Trust (Reit) has failed to sell two logistics assets in Zhejiang, China, as the Reit’s sponsor could not obtain sufficient financing for the proposed divestment.
This rendered the sponsor Forchn and the purchasers unable to complete the deal by the already postponed long-stop date on Oct 31, the manager announced on Thursday.
The manager said it is looking for at least two independent consultants to evaluate the possibility of divesting one or more of the Reit’s properties to third parties via open market sale. This includes, but is not limited to, Bei Gang Logistics and Chongxian Port Logistics in the proposed divestment.
The troubled Reit is also seeking legal and financial advice on the possible termination of the proposed divestment and possible options to address “ongoing challenges”.
EC World Reit had on Sept 30 last year entered into an equity purchase agreement to divest all of its indirect interests in Bei Gang Logistics and Chongxian Port Logistics in Zhejiang.
The long-stop date was extended to Oct 31 from the initial Jan 31 this year, after the Reit received nods from the Monetary Authority of Singapore.
EC World Reit also owns properties in China, such as Fu Heng Warehouse in Hangzhou.
The Reit’s units have been suspended from trading since Aug 31. THE BUSINESS TIMES
