EC World Reit repays onshore interest expenses in full after tapping interest reserves

THE manager of EC World Real Estate Investment Trust (EC World Reit) said on Thursday (Sep 21) that around 11.3 million yuan (S$2.1 million) has been released from its onshore interest reserve to fully repay the Reit’s onshore interest expenses due on Wednesday.

The Reit’s majority lenders approved the release of the interest reserves at the manager’s request, it added.

However, as there is no specific deadline by which the onshore interest reserves need to be topped up, there are ongoing talks between onshore lenders and EC World Reit and its subsidiaries.

The China-focused Reit and its subsidiaries are owed more than 145.8 million yuan in overdue rent by their sponsor Forchn Holdings Group and its subsidiaries. The manager had previously flagged a “high risk” of non-collection of the rent receivables.

EC World Reit units have been suspended from trading since Aug 31. They last traded at S$0.28 on Aug 28.