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Chinese shopping mall owner Dasin Retail Trust has received a letter from Macau’s Luso Bank declaring default after a Singapore-listed REIT failed to pay interest on its $13.1 million loan facility.
Pursuant to the last interest payment made under the facility, the trust was required to replenish its Luso Bank reserve account within five business days from the effective date of the facility, the trust’s manager filed with the Singapore Exchange on Thursday. said in a document.
“The Trust was unable to do so due to technical issues related to securing approval from an onshore lender/security agent in China for the transfer of funds from the Trust’s onshore RMB account,” said the manager’s CEO. One Wang Qiu said.
Luso Bank issued a statutory demand to the manager on January 10, declaring default under the facility agreement and demanding payment of all principal and interest. The manager is seeking legal advice related to its obligations under the loan facility, it said.
extension extension
The default announcement comes 10 days after Dasin Retail Trust revealed it had engaged financial advisor FTI Consulting to “assess and validate the financial condition” of the REIT and its subsidiaries.
On January 2, the trust’s manager ordered the lender to repay the debt after failing to meet an earlier extension that required the repayment of offshore debt of S$670.8 million (currently $507 million) and RMB400. announced that it had requested an additional extension of By December 31st he will offer a $1 million (currently $59 million) onshore loan.
The REIT, which is sponsored by Guangdong-based developer Zhongshan Daxin Real Estate, has secured a series of loan extensions for its onshore and offshore debt from 2021 onwards, sending its stock price plummeting.
Last September, the trust won a three-month extension on some of its debt, but six months later, the manager sold its most valuable malls, Xiaolan Metro and Shiqi Metro, together. disclosed a non-binding memorandum of understanding. RMB 4.7 billion — to Wuhu Yuanche Bisheng Investment Center.
The intended purchaser was a buyout fund co-managed by Beijing-based private equity firm Sino-Ocean Capital Holding, one of the larger investors, although an update on the potential transaction was not provided. Is not …
talks continue
The trust’s manager said Thursday that it is aiming to defer repayments on three sets of loans until April 30 and is continuing negotiations with lenders.
These liabilities include S$430 million in offshore properties and RMB400 million in local debt the trust borrowed in 2017 to finance the acquisition of its first four malls in Zhongshan, Guangdong. It is included.
It also repaid S$134.2 million borrowed offshore in 2020 to finance another two Guangdong malls (one each in Foshan and Zhongshan) and acquired a mall in the Zhuhai district in 2019. It is behind in repaying S$106.61 million in offshore facilities borrowed to raise funds. .
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