”These matters indicate that a material uncertainty exists that may cast significant doubt on the ability of the Group and of ECW REIT to continue as going concerns,” the auditor says.
Chinese REITs and property trusts listed in Singapore appear to be under some stress. EC World REIT’s (ECW) manager announced that its auditors had issued an emphasis of the matter in respect of material uncertainty relating to the ability of ECW to continue as a going concern.
This is because the current liabilities of EC World REIT and its subsidiaries have exceeded their current assets by $234.1 million and $131.0 million respectively. The current liabilities include bank borrowings of $139.2 million due for repayment by December 31.
