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EC World REIT Owed RMB 171 Million Of Rent By Sponsor Forchn Holdings

Nov 13, 2023 – EC World REIT (ECW) said that its sponsor Forchn Holdings and its subsidiaries owed the REIT more than RMB 171 million, according to a company statement.

Of the outstanding rent receivables, RMB 126 million was the rent payable under master leases between the sponsor group and the ECW Group while the balance RMB 45 million represents rent payable by the other subsidiaries of the sponsor group.

Meanwhile, the REIT is negotiating with China Tobacco Zhejiang Industrial Co., Ltd. in relation to the renewal of a lease at Hengde Phase 2. China Tobacco has decided not to renew the lease for Hengde Phase 1 after the existing lease terminates on December 31, 2023, it said.

While ECW’s current aggregate leverage had decreased from 38.8% as of December 31, 2022, to 36.9% as of September 30, 2023, there is a risk that the gearing ratio will increase materially due to the aforementioned change in the valuations of the assets of ECW Group, according to the statement.

ECW posted a net property income of S$24.7 million in the third quarter of 2023, down 8.5% from S$27 million a year ago, mainly due to a weaker RMB against the Singapore dollar.