Forchn Holdings Group, the sponsor of EC World REIT says it is unable to obtain sufficient financing for the proposed divestment of Stage 1 Properties of Bei Gang Logistics and Chongxian Port Logistics.
As such, the proposed divestment will not be able to go ahead by the long-stop date, which is at Oct 31.
The date had been extended to Oct 31 from Jan 30 previously, said the REIT in July.
In view of this, the REIT manager says it is in the process of appointing two independent consultants to evaluate the possibility of divesting one or more properties within the REIT. This includes – and is not limited to – the properties that were already up for divestment. The divestment will be made to third parties via an open market sale.
The manager is also seeking legal advice for the possible termination of the proposed divestment.
In addition, it says it will appoint financial advisers to explore various options available to the REIT to address its ongoing challenges.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
Units in EC World REIT last traded at 28 cents before it called for a voluntary trading suspension in August.
