Mapletree Logistics Trust: CWT has paid rents

MAPLETREE Logistics Trust (MLT) became the latest landlord to state that logistics provider CWT Pte Ltd, whose Hong Kong parent has failed to pay creditors, has not defaulted on its rental payments.

Trust manager Mapletree Logistics Trust Management said CWT Pte Ltd had no arrears due to date from current tenancy agreements for five MLT properties at 5A Toh Guan Road East, 4 Pandan Avenue, 6 Fishery Port Road, 38 Tanjong Penjuru and 52 Tanjong Penjuru. MLT also noted that it currently holds security deposits of six months of rental.

CWT Pte Ltd is a top tenant for MLT, with a revenue contribution of 9.1 per cent for the third quarter ended Dec 31, 2018, as disclosed in its results presentation dated Jan 21, 2019.

On Tuesday, CWT Ptd Ltd's parent, CWT International, reported that it was facing claims by creditors after it missed interest and fee payments to lenders of a HK$63 million amount, triggering a cross default of a HK$1.4 billion facility. CWT International's 100 per cent stake in CWT Pte Ltd is charged as security for that debt, raising the possibility that the lenders could seek to take possession of CWT Pte Ltd if CWT International does not pay up by Wednesday, April 17.

Concerns about CWT Pte Ltd's ability to pay its rents led to a selldown on Tuesday of real estate investment trusts in Singapore that were landlords for the Singapore tenant.

Cache Logistics Trust and Aims Apac Reit have both said that CWT had not defaulted in its rental payments and that there were no arrears due.

MLT units closed a S$1.42 on Tuesday, down 4 per cent. Cache fell 5.3 per cent to close at 71.5 Singapore cents, while Aims Apac Reit slipped 1.4 per cent to S$1.39.