EC World Reit extends maturity of outstanding facilities; refinancing exercise ongoing

EC World real estate investment trust’s (Reit) : BWCU 0% manager said on Wednesday (Jul 6) that it has successfully extended the maturity date of its outstanding onshore and offshore facilities to Apr 30, 2023.

The Reit’s manager noted that this would give it enough time to complete an ongoing refinancing exercise.

Regarding the repayment of at least 25 per cent of the facilities by the end of this year, the manager said it is studying various options to raise funds, including the potential divestments of non-core assets.

On Jun 13, 2022, the manager entered into a non-binding memorandum of understanding to potentially divest Beigang Logistics Stage 1 and Chongxian Port Logistics, both of which are located in Hangzhou, China.

The Reit’s sponsor, Shanghai-headquartered Forchn Holdings Group, has also provided assurance through an undertaking to lenders that it will ensure the repayment will be made.

Executive director and chief executive of the manager Goh Toh Sim said that unlike the residential sector in China, which is still experiencing headwinds, the e-commerce and logistics sectors remain resilient. He is also optimistic that EC World Reit’s assets would be able to generate stable returns for investors.

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The announcement comes after EC World Reit's auditors, PwC, had highlighted a material uncertainty in its FY2021 financial statements on the Reit's ability to continue as a going concern.

At the time, the refinancing of loans due for repayment in May and July 2022 was not completed when the financial statements were issued. The financials therefore reflected that the Reit's current liabilities exceed its current assets.

Units of EC World Reit closed flat at S$0.42 on Wednesday.