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7 of their prpoerties are in Hangzhou which also relaxed covid measures yesterday.
SPECIAL DISTRIBUTION The Manager intends to make a Special Distribution to Unitholders within 40 Business Days of Completion. The amount of the Special Distribution is expected to be the Singapore dollar equivalent of an RMB amount which represents the balance of the proceeds from the Equity Consideration after the utilisation of proceeds referred to in paragraphs 8(i), 8(ii) and 8(iii) of this Letter to Unitholders above, based on the exchange rate as at the Completion Date. Purely for illustrative purposes only, based on the Illustrative Exchange Rate, the Special Distribution is expected to be approximately S$90,232,271, which represents approximately S$0.1114 per Unit
This is on top of the $0.01364 dividend going ex on 6 Dec 2022
This is on top of the $0.01364 dividend going ex on 6 Dec 2022
Exactly.
But on a second thought, China' s govt hint that they will relax on loan to the ppty developer and I read some where that banks have been instructed to roll over the 6 mths expiry loans for another year. Having said that, its sponsor' s financial should stay stable and hence onshore/offshore refinancing should eventually pass thru' but at a higher interest cost.
But on a second thought, China' s govt hint that they will relax on loan to the ppty developer and I read some where that banks have been instructed to roll over the 6 mths expiry loans for another year. Having said that, its sponsor' s financial should stay stable and hence onshore/offshore refinancing should eventually pass thru' but at a higher interest cost.
sgmystique ( Date: 24-Nov-2022 10:22) Posted:
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The market does not seeem to be too excited by the latest announcement...Does this indicate a lack of trust on management???
SmallSmall ( Date: 23-Nov-2022 22:01) Posted:
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This annoucement is good enough for a rebound tomorrow. DBS has been over cautious in their downgrade call.
In the first place the deal was not cancelled. It was just that the Sponsor needed more time to get the financing approved.
In the first place the deal was not cancelled. It was just that the Sponsor needed more time to get the financing approved.
Farmer ( Date: 23-Nov-2022 21:57) Posted:
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One day 1 story and the latest SGXNET annoucement is as follows:
" In respect of the obligation of the Sponsor to ensure that the Mandatory Repayment is made by 31
December 2022, the Board of the Manager (the &ldquo Board&rdquo ) is of the view that the Sponsor has sufficient
financial resources to meet its obligations under the Offshore Undertaking and the Onshore
Undertaking by ensuring that the Mandatory Repayment is made by 31 December 2022. This is based
on the management&rsquo s review of latest audited financial statements of the Sponsor and written
confirmation from the Sponsor that the Sponsor is able to fulfil its undertakings to the existing lenders
of ECW that the Sponsor will ensure ECW to repay Mandatory Repayment by 31 December 2022."
Why not the sponsor just privatize the Reits since it has the " sufficient financial resources" and the current trading price is consider " cheap" as compared to last year when they 1st state their intention to buy over all its properties?
" In respect of the obligation of the Sponsor to ensure that the Mandatory Repayment is made by 31
December 2022, the Board of the Manager (the &ldquo Board&rdquo ) is of the view that the Sponsor has sufficient
financial resources to meet its obligations under the Offshore Undertaking and the Onshore
Undertaking by ensuring that the Mandatory Repayment is made by 31 December 2022. This is based
on the management&rsquo s review of latest audited financial statements of the Sponsor and written
confirmation from the Sponsor that the Sponsor is able to fulfil its undertakings to the existing lenders
of ECW that the Sponsor will ensure ECW to repay Mandatory Repayment by 31 December 2022."
Why not the sponsor just privatize the Reits since it has the " sufficient financial resources" and the current trading price is consider " cheap" as compared to last year when they 1st state their intention to buy over all its properties?
Covid zero one of the main cause for china stocks downhill. Flu (covid with many similar symptoms) has been around for 1500+ years. How to attain covid zero? 3 years alr leh. Many head of states think they are at a higher platform than scientists, engineers, biologists, virulogists? Pseudo ppl. Laugh!
EC World Reit to remain a going concern, in discussions with lead loan lenders for repayment
THE board of directors at EC World Real Estate Investment Trust : BWCU -4.4% (EC World Reit) has assessed that the trust will remain a going concern, a bourse filing on Tuesday (Nov 22) said.
The Reit manager said it is currently &ldquo in discussions&rdquo with the lead lenders of the existing offshore bank loans and existing onshore bank loans to refinance the remaining amount of the loan facilities that are maturing by Apr 30, 2023.
In June, the Reit announced the extension of the maturity date of the existing offshore bank loans to the earlier of either the earliest maturity date of the existing onshore bank loans, or Apr 30, 2023.
In connection with the extension of this maturity date, the sponsor had also provided an undertaking on May 31 to the relevant lenders of the existing offshore bank loans to procure that the exercise of refinancing of the existing offshore bank loans be commenced immediately, and to ensure that at least 25 per cent of the aggregate principal amount of these loans are repaid by the end of 2022.
The Reit manager had also on Jun 13 announced its entry into a non-binding memorandum of undertaking with Forchn International Pte Ltd (FIPL) to explore the potential divestment of certain properties &ndash namely the Stage 1 Properties of Bei Gang Logistics and Chongxian Port Logistics.
In that announcement, the Reit had said that the lenders of the existing offshore and onshore bank loans had called on the trust to repay the mandatory repayment amount by Dec 31, due to the current macroeconomic and real estate market conditions in China.
EC World Reit said the mandatory repayment still &ldquo remains to be the case&rdquo .
The board of directors has assessed that the Reit will remain a going concern, as it expects at this juncture that the repayment of mandatory repayment and refinancing of the remaining facilities will be completed before these borrowings become due for repayment.
The Reit manager will make further announcements on the bourse if there are &ldquo material developments which warrant disclosure&rdquo , the Reit said.
EC World Reit flags potential asset sale delay due to transaction financing hiccups
THE transaction financing long-stop date for the purchasers of EC World Real Estate Investment Trust&rsquo s (EC World Reit : BWCU -6.19%) divestment properties has lapsed, potentially delaying the divestment past the Reit&rsquo s deadline to repay a portion of its outstanding loans.
EC World Reit in October announced that it would be divesting its indirect interests in Bei Gang Logistics and Chongxian Port Logistics for a total of 2.03 billion yuan (S$392.7 million). Part of the proceeds from the divestment will go towards repaying 25 per cent of the Reit&rsquo s outstanding onshore and offshore loans by Dec 31, as required by its lenders.
On Sunday (Nov 20), the Reit&rsquo s manager said &ldquo stringent&rdquo Covid-19 controls, the Chinese National Day holiday and the Communist Party of China&rsquo s 20th Party Congress had caused delays in lenders&rsquo internal approval processes for the transaction financing. The purchasers were therefore unable to complete the transaction financing processes before the long-stop date of Nov 18.
The manager said EC World Reit has three options moving forward.
First, it could proceed to have the purchasers enter into transaction financing even though the long-stop date has lapsed. In this case, the Reit&rsquo s sponsor would no longer indemnify any costs and expenses incurred as a result of the divestment.
Second, the Reit could complete the divestment without entering into transaction financing, subject to certain conditions. The manager highlighted that transaction financing is not actually required for the divestment to proceed.
Third, the Reit could terminate the equity purchase agreement for the divestment. However, its manager said failure to enter into transaction financing is not grounds for termination.
The manager noted that with the failure to enter into the transaction financing by Nov 18, the divestment could be delayed past Dec 31.
In its initial announcement on the divestment, the manager said it believed there was a &ldquo real risk&rdquo of not being able to meet the 25 per cent repayment obligations if the divestment is not completed.
&ldquo If the completion of the divestments is indeed delayed beyond Dec 31, 2022, it calls into question if EC World Reit will still be able to meet the conditions set by its lenders in order to refinance the loans due Apr 30, 2023,&rdquo said DBS Group Research analysts Dale Lai and Derek Tan.
Following the announcement, they have downgraded EC World Reit by two notches to &ldquo fully valued&rdquo from &ldquo buy&rdquo . The research team has also slashed its target price on the counter to S$0.40 from S$0.55 to account for the uncertainty.
This implies a potential downside of 11.1 per cent from EC World Reit&rsquo s last trading price of S$0.450 as at 4.08 pm on Monday. The Reit&rsquo s units were trading 7.2 per cent or S$0.035 lower at the time.
With the proposed divestments, Lai and Tan expect the pro-forma net asset value of the e-commerce logistics Reit to fall to S$0.7816.
Although EC World Reit had cited logistical delays for the failure to obtain the transaction financing, DBS believes the matter will &ldquo undoubtedly&rdquo lead to concerns over the Reit&rsquo s sponsor&rsquo s financial standing.
The research team noted that a majority of the Reit&rsquo s earnings at present come from master leases with its sponsor. Thus, any negative impact on its master leases with its sponsor will severely pose a downside risk to Reit&rsquo s earnings.
&lsquo Unique opportunity&rsquo to accumulate EC World REIT as divestments take place: DBS
DBS Group Research analysts Dale Lai and Derek Tan think there is a &ldquo unique opportunity&rdquo to accumulate shares of EC World REIT, given that its share price has fallen about 45% ytd due to perceived refinancing issues.
Nonetheless, they have maintained their &ldquo buy&rdquo call on EC World REIT, but have trimmed their target price from 70 cents to 55 cents.
The analysts note the ongoing proposed divestment of two of EC World REIT&rsquo s assets of about $432.8 million and see this as a &ldquo positive&rdquo for the REIT.
They refer to the divestment of Beigang Logistics Stage 1 and Chongxian Port Logistics, which is expected to be completed by the end of the year.
Once completed, the bulk of the proceeds will be used to repay debt, and the remaining is to be distributed as a special distribution. Lai and Tan say this will alleviate concerns about EC World REIT&rsquo s debt obligations and pave the way for it to refinance its other outstanding loans.
Gearing is relatively stable at 39.3%, and it is expected to improve slightly once RMB862.6 million ($166.7 million) in loans are repaid with the divestment proceeds.
This will also potentially allow unitholders to crystalise NAV and receive a one-off dividend ranging between 10 to 12 cents, as well as reduce their reliance on master leases of the sponsor.
&ldquo Post-sale, we see EC World REIT still delivering yields of about 6%,&rdquo they think, despite the fact that distribution per unit (DPU) is expected to decline by about 29% and net asset value (NAV) will be reduced by 14%.
However, the question from the analysts is: will shareholders approve the divestment?
They say that &ldquo given that it&rsquo s an interested party transaction, we envision unitholders only accepting a deal that is valued close to NAV.&rdquo
EC World REIT also has inherent organic growth in the portfolio underpinned by master leases, with Lai and Tan highlighting that there are rental escalations ranging from 1% to 2.5% built into its master leases.
This ensures organic growth in EC World REIT&rsquo s earnings, and its multi-tenanted assets that cater to the fast-growing logistics industry also have the potential to deliver revenue growth.
However, other than the rental escalations, the analysts say that there is a lack of growth catalysts, and &ldquo it is unclear how soon EC World REIT can resume its growth plans and embark on future acquisitions again.&rdquo
This also explains their lower target price, as they account for the absence of income from divestments of the two assets by the year-end, as well as the lower NAV due to the special distribution.
The Proposed Divestment is expected to generate net proceeds of RMB 1,320 million (approximately S$ 264.1 million) after relevant transaction costs, which are expected to provide sufficient cash proceeds to enable ECW to finance its repayment obligations while also enabling special distribution to Unitholders.
Looks like your divestment numbers are wrong.
At Jun2 2022, property valuation was SGD1.589 billion.
Therefore, 1.589-0.264= 1.325 billion
Total total market share value = SGD0.435 x 809,838,000 = SGD352million
Therefore, 352/1.325 = 26%
Looks like your divestment numbers are wrong.
At Jun2 2022, property valuation was SGD1.589 billion.
Therefore, 1.589-0.264= 1.325 billion
Total total market share value = SGD0.435 x 809,838,000 = SGD352million
Therefore, 352/1.325 = 26%
sgmystique ( Date: 04-Oct-2022 11:40) Posted:
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Based on my understanding (pls correct me if there is some mistake):
Bei Gang Logistics (agreed property value) = 1.2 billion yuan (S$242 million)
and Chongxian Port Logistics (agreed property value) = 820 million yuan (S$165 million)
Total Proceeds = 2.020 billion yuan (S$407 million)
For simplicity sake, assuming the entire sale consideration is satsified in cash by the sponsor, the proceeds of S$407 million would be very close to the current market capitalisation of EC World (S$0.525*809,838,000) = S$425.16 million
Does that mean that all the remaining properties of EC world will then be valued at (S$425.16 - S$407) = S$18.16 million only...
Would anybody be able to help with the net debt position and the NAV for EC World, assuming the proposed asset sale goes forward as planned...
EC World Reit proposes asset sale for loan repayment to make special distribution
Stage 1 properties of Bei Gang Logistics. EC World Reit is proposing to divest its indirect interests in Bei Gang Logistics and Chongxian Port Logistics.
SINGAPORE - EC World Real Estate Investment Trust (EC World Reit) is proposing to divest its indirect interests in Bei Gang Logistics and Chongxian Port Logistics at the agreed property values of 1.2 billion yuan (S$242 million) and 820 million yuan respectively, each representing a premium of 2.9 per cent to their independent valuations.
Proceeds from the transaction will be mainly used to finance the repayment of existing loans, said the Reit manager in a bourse filing on Monday.
The purchasers, who are wholly owned subsidiaries of the Reit' s sponsor, will fund the purchase of the two properties through a consideration of 1.4 billion yuan, while also repaying no more than 266.4 million yuan of outstanding onshore borrowings for Hangzhou Bei Gang Logistics, which owns the Bei Gang Stage 1 asset.
Some 450.9 million yuan of net proceeds will also be paid to unit holders through a special distribution, which is expected to be the Singapore dollar equivalent of a renminbi amount representing the balance of the proceeds from the equity consideration.
For illustration purposes based on the exchange rate of 1 yuan to 20.01 cents, the special distribution is expected to be $90.2 million, which represents about 11.14 cents per unit.
Overall, the divestment is expected to generate net proceeds of 1.3 billion yuan. The manager expects to provide sufficient cash proceeds for the Reit to finance its repayment obligations while also returning cash to unit holders through the special distribution.
Having carried out " extensive engagements" with its lending banks and evaluating the proposed divestment, EC World Reit' s manager said there is a " real risk" that the Reit and its subsidiaries may not be able to meet its repayment obligations if the proposed divestment is not carried out.
Despite a gradual resumption of domestic economic activities, the manager flagged continued pressure on the Chinese economy due to rising inflation and the ongoing war in Ukraine.
EC World Reit intends to seek unit holder approval for its proposed divestment at an upcoming extraordinary general meeting to be convened.
If approved by unit holders, the divestment will enable EC World Reit to pare down at least 25 per cent of the aggregate principal amount of its outstanding onshore and offshore loans due on Dec 31, 2022 - thus fulfilling a condition set by existing lenders of the Reit.
EC World Reit
On Jul 1, EC World Asset Management&rsquo s executive director and CEO Goh Toh Sim acquired 231,100 units of EC World Reit : BWCU +3.23% (ECW) at an average price of 42.1 cents per unit. With a consideration of S$97,406, this increased his direct stake in ECW from 0.10 per cent to 0.13 per cent.
Goh has over 26 years of experience in the management of industrial parks, real estate development and business management in China. Prior to joining the manager, he was the chief representative in China for Keppel Corporation where he was responsible for government relations and business development.
On Jul 6, ECW announced it had extended the maturity of outstanding onshore and offshore facilities to Apr 30, 2023, with the refinancing exercise ongoing. With the announcement, Goh added that unlike the residential sector in China, which is still experiencing headwinds, the e-commerce and logistics sectors in China are resilient.
He added that ECW&rsquo s assets are mature e-commerce and logistics assets that are generating stable returns for investors in terms of regular quarterly distributions since its initial public offering (IPO).
7/7/22: Share price dip from $0.735 in Apr 2022 to 7/7/22 of $0.46 likely due to pushing down by Banker at P/B:0.446 means they used $0.446 to buy $1 asset. They are more interested to buy property than buy share, with successful extension of loan, Bankers have failed their attempt. Now a day, many Security Firm In House Broker also involve in Stock Trading, 0.46/0.735=0.625, with Margin Interest rate of 4.5%, they killed a lot of Margin Trader.
EC World Reit extends maturity of outstanding facilities refinancing exercise ongoing
EC World real estate investment trust&rsquo s (Reit) : BWCU 0% manager said on Wednesday (Jul 6) that it has successfully extended the maturity date of its outstanding onshore and offshore facilities to Apr 30, 2023.
The Reit&rsquo s manager noted that this would give it enough time to complete an ongoing refinancing exercise.
Regarding the repayment of at least 25 per cent of the facilities by the end of this year, the manager said it is studying various options to raise funds, including the potential divestments of non-core assets.
On Jun 13, 2022, the manager entered into a non-binding memorandum of understanding to potentially divest Beigang Logistics Stage 1 and Chongxian Port Logistics, both of which are located in Hangzhou, China.
The Reit&rsquo s sponsor, Shanghai-headquartered Forchn Holdings Group, has also provided assurance through an undertaking to lenders that it will ensure the repayment will be made.
Executive director and chief executive of the manager Goh Toh Sim said that unlike the residential sector in China, which is still experiencing headwinds, the e-commerce and logistics sectors remain resilient. He is also optimistic that EC World Reit&rsquo s assets would be able to generate stable returns for investors.
The announcement comes after EC World Reit' s auditors, PwC, highlighted a material uncertainty in its FY2021 financial statements on the Reit' s ability to continue as a going concern.
At the time, the refinancing of loans due for repayment in May and July 2022 was not completed when the financial statements were issued. The financials therefore reflected that the Reit' s current liabilities exceed its current assets.
Stock price is trying to find a bottom and it may be imminent at ~ 0.40.. Lets see.
Prices should move higher as the confident level build-up consider that last week the ceo bot ~ 231K @0.42.1
Having said that, investors are generally concern and will be more caution on this stock going forward
Thus, its best for the sponsor to take it private by 30 Apr 23 as its nav & divd will definately fall ~25 to 30% after the divestment and refinancing.
Prices should move higher as the confident level build-up consider that last week the ceo bot ~ 231K @0.42.1
Having said that, investors are generally concern and will be more caution on this stock going forward
Thus, its best for the sponsor to take it private by 30 Apr 23 as its nav & divd will definately fall ~25 to 30% after the divestment and refinancing.
Loan repayment extended to April ' 23. Tomorrow to gap up... along with the another China REITs (e.g. Dasin) with refinancing issues due to ongoing credit winter, looks like getting repeated short extension is a given. The sky is not falling :P
dumping like crazy.