First Reit's problematic rent structure with master lessee brought to fore
Add BT as a preferred sourceTHE dilutive rights issue proposed by the manager of First Reit last Monday to raise some S$158 million at a 50 per cent discount is a painful but necessary remedy to its persistent problems of tenant concentration and excessive rental support given by its master lessee Lippo Karawaci (LK).
Just as a tide going out reveals those who have been swimming naked, so Covid-19 also surfaced problems with First Reit's rental structure with LK.
LK itself has been plagued with weak operating cash flows and an inability to divest assets since a few years ago when its parent Lippo Group's US$21 billion Meikarta property project near Jakarta got embroiled in alleged bribery.
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
COEs for large cars up 4.3% at S$126,236, mainstream cars near S$125,000
‘We’re not a bubble tea brand’: Chagee aims to double Asia-Pacific footprint to 600 stores by 2027
