The manager of EC World REIT BWCU has been granted a waiver by the Monetary Authority of Singapore (MAS) to divest its Chinese logistics properties, Bei Gang Logistics and Chongxian Port Logistics.
The waiver was sought under MAS’s code on collective investment schemes. Under paragraph 5.4(b)(ii) of Appendix 6 of the code, the REIT was supposed to complete the proposed divestment on June 16, six months after its unitholders approved the divestment.
The waiver came with several conditions. With the new extension, the divestment will have to be completed by Oct 31 instead. The REIT also has to seek its unitholders’ approval for the extended deadline.
In addition, the REIT manager will have to sell the assets at an amount that is at least equivalent to the lower of two independent valuations. The updated valuations will have to be disclosed in a circular to the REIT’s unitholders in relation to the proposed extraordinary general meeting (EGM) that will be held to seek their approval to extend the long-stop date.
The board of the manager will also have to provide MAS with a written confirmation that it has assessed that the extended timeline and any revisions to the proposed divestment are in the best interests of the REIT and its unitholders. The assessment will have to be disclosed via SGXNET.
According to the board of the manager, the extended timeline came after the purchasers of the properties and the REIT’s sponsor told the manager that the former had yet to secure the requisite financing for the proposed divestment among other reasons.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
As at June 13, a total of RMB333.02 million ($62.4 million) – out of the equity consideration of RMB1.37 billion - has been prepaid to the vendor by the sponsor.
Units in EC World REIT closed flat at 33.5 cents on June 13.
