EC World Reit gets right of first refusal on Bei Gang Logistics Stage 2 properties

EC World Real Estate Investment Trust (Reit) has chosen not to acquire Stage 2 properties of Bei Gang Logistics for a purchase consideration of 702.5 million yuan (S$140 million), the Reit's manager announced on Tuesday after the market closed.

This was after its unit Hangzhou Bei Gang Logistics received a right of first refusal to acquire the entire right of use and economic benefits in relation to Stage 2 properties of Bei Gang Logistics in the west of Chongxian New City in China.

The offer was made pursuant to the right of first refusal provided under a June 30 call option agreement between the Reit's sponsor Forchn Holdings Group and Hangzhou Bei Gang Logistics.

EC World Reit said that having considered the offer, it was of the view that the acquisition "would not be in the best interests of EC World Reit at this juncture given that the transaction will not be accretive to the distribution per unit of EC World Reit at the stated purchase consideration".

It added that it will continue to explore opportunities from both Forchn and third parties "for the acquisition of yield-accretive assets which are in line with EC World Reit's investment criteria and strategy".

EC World Reit units closed unchanged at 69.5 Singapore cents on Tuesday.