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CWT contributes to 16.5% rental income, not in rental arrears: Cache Logistics Trust

ANOTHER CWT landlord in Singapore has filed a regulatory announcement to say that the logistics provider and wholly-owned subsidiary of CWT International has not defaulted in its rental payments for tenancy at CWT Commodity Hub and Pandan Logistics Hub. 

Following Aims Apac Reit's announcement on CWT's lease, another landlord Cache Logistics Trust through its manager ARA Trust Management (Cache) in a late-night filing with the Singapore Exchange revealed that CWT contributes to approximately 16.5 per cent to its gross rental income (GRI) as at Apr 16. This was lower than the 20.6 per cent four months ago as at Dec 31, 2018.

Further, the weighted average lease to expiry of the CWT leases at CWT Commodity Hub and Pandan Logistics Hub is less than one year by GRI. The company has not defaulted in its rental payments and there are no arrears due as at Apr 16. But Cache holds an average of approximately three months security deposit in relation to these leases.

As the CWT lease expires, ARA is in a position to negotiate with the end-users in relation to each of CWT's leases as well as other prospective tenants to maintain occupancy and preserve the continuity of rental income from the property by way of directly contracting with Cache.

On Apr 16, CWT International failed to pay accrued interests and certain fees in the total amount of approximately HK$63 million (S$10.93 million) to the lenders which have become due and payable under its facility agreement entered into by CWT International for the advancement of a loan in the principal amount of HK$1.4 billion.

As a default has occurred under the facility agreement, the lenders have declared that all amounts accrued or outstanding under the facility agreement be immediately due and payable, and that the security relating to the facility agreement has become enforceable. The security includes 100 per cent shareholding of CWT International in the respective holding companies of CWT Pte Ltd.

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