Dasin Retail Trust terminates two lease agreements in China over unpaid rent, utilities

DASIN Retail Trust has terminated two leases in its malls in China over arrears in rent and utilities payment.

In a bourse filing on Monday (Apr 24), the real estate investment trust’s (Reit) trustee-manager announced the terminations of the lease of an anchor Carrefour China outlet in the Ocean Metro Mall over unpaid rent amounting to 7.3 million yuan (S$1.4 million), along with the lease held by electronics retailer Gome in the Shiqi Metro Mall over 8.4 million yuan in rental arrears and utilities fees.

The Carrefour lease was originally for a term of 20 years, commencing from Dec 28, 2014, for a total leased area of 17,770 square metres (sq m), the Reit’s trustee-manager said.

“With the lifting of the movement control measures in China and with Carrefour China (being one of the anchor tenants of Ocean Metro Mall) vacating its leased units, the group is exploring asset enhancement initiatives with respect to Ocean Metro Mall, with targeted completion in Q4 2023, with a view to improving rental performance,” it added.

Meanwhile, the Gome lease was for a term of up till Apr 15, 2027, for a total leased area of 4,373 sq m.

The China-focused Reit has seven properties in China, but its portfolio valuation has declined as at end-December 2022.

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Units of Dasin Retail Trust closed 4.2 per cent or S$0.006 lower at S$0.138 on Monday, prior to the announcement.