Dasin Retail Trust signs MOU for potential divestment of 2 malls

THE trustee-manager of Dasin Retail Trust on Sunday (Mar 20) announced that it has entered into a non-binding memorandum of understanding (MOU) for the potential divestment of 2 of its retail properties - Shiqi Metro Mall and Xiaolan Metro Mall.

Net proceeds from the sale of the properties are expected to be used to repay the trust's existing syndicated loans, with the remainder to be used for working capital purposes.

Shiqi Metro Mall and Xiaolan Metro Mall were valued at 2.81 billion yuan (S$599.6 million) and 2.02 billion yuan respectively as at Dec 31, 2021.

Sino-Ocean Capital, a substantial unitholder of the trust via its affiliate, will jointly manage the purchaser, buyout fund Wuhu Yuanche Bisheng Investment Center, with GSUM Real Estate Fund Management Co.

The affiliate, Glory Class Ventures, holds approximately 6.3 per cent of Dasin Retail Trust as at Mar 18.

Dasin Retail Trust said the MOU does not restrict the trustee-manager from soliciting higher or otherwise better offers by other third parties.

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The Singapore-listed real estate investment trust (S-Reit) currently holds 7 retail properties in its portfolio.

Units of Dasin Retail Trust closed at S$0.31 on Mar 18. The counter has shed 18.4 per cent or S$0.07 in the year to date.