EC World Reit receives waiver for deadline to divest Chinese logistics assets

EC World Reit has received a waiver from the Monetary Authority of Singapore (MAS) to complete its proposed divestment of two Chinese logistics assets by the deadline of Jun 16.

The Reit was originally required to complete the divestment six months after it was approved by unitholders on Dec 16, 2022.

This requirement has been waived by MAS, but on the condition that the deal be completed by Oct 31 instead and that unitholders’ approval is obtained for the extended timeline, the Reit manager said in a Tuesday (Jun 13) bourse filing.

The manager will also need to obtain two independent valuations for the current market valuations of the properties. 

Back in October last year, EC World Reit said it would be divesting its indirect interests in Bei Gang Logistics and Chongxian Port Logistics for 2.03 billion yuan (S$392.7 million), but the deal’s completion has been delayed.

EC World Reit’s board noted that the purchasers “have yet to secure the requisite financing” for the divestment. It believes that the extension is in the “best interests” of the company and unitholders, but will review its assessment if there are revisions to the deal terms.

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EC World Reit units closed flat at S$0.335 on Tuesday.